This year Nathan transferred $7 million to an irrevocable

This year Nathan transferred $7 million to an irrevocable trust established for the benefit of his nephew. The trustee is directed to accumulate income for the next 5 years before distributing the trust corpus to Nathan's nephew. In past years Nathan has made taxable gifts of $6 million and used an applicable credit on an exemption equivalent of $5 million. What amount of gift tax, if any, must Nathan remit? Question 14 options:

A) $345,450.

B) $320,000.

C) $800,000.

D) zero - there is a $11.18 million exemption equivalent. E) None of the choices are correct. The amount of tax cannot be estimated without the use of a tax rate schedule


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