Eric dies in the current year and has a gross estate valued at $6,500,000.The estate incurs funeral and administrative expenses of $100,000 and also pays off Eric's debts which amount to $250,000.Eric bequeaths $600,000 to his wife.Eric made no taxable transfers during his life.Eric's taxable estate will be
A)$210,000.
B)$5,550,000.
C)$6,150,000.
D)$6,500,000.

Question

Quizplus · Accepted Answer

The taxable estate calculation is as follows:
Gross estate: $6,500,000
- Funeral and administrative expenses: $100,000
- Debts paid off: $250,000
= Adjusted Gross Estate: $6,150,000
- Marital deduction: $600,000
= Taxable Estate: $5,550,000
Therefore, the correct choice is B.

Eric Dies in the Current Year and Has a Gross