Mr. Ito, an unmarried individual, made a gift of real estate to his son. Compute the amount subject to federal gift tax in each of the following situations:
a. The FMV of the real estate was $1,750,000, and the transfer was Mr. Ito’s first tax-able gift.
b. The FMV of the real estate was $6,540,000, and the transfer was Mr. Ito’s first tax-able gift.
c. The FMV of the real estate was $4,912,000. Two years ago, Mr. Ito made his first taxable gift: marketable securities with a $987,000 FMV in excess of the annual exclusion.