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 $4.75 million, and the transfer was Mr. Ito’s first taxable gift.

b. The FMV of the real estate was $15 million, and the transfer was Mr. Ito’s first taxable gift.

c. The FMV of the real estate was $15 million. Two years ago, Mr. Ito made his first taxable gift: marketable securities with a $3 million FMV in excess of the annual exclusion.

Assume the taxable year is 2018.