Question: Exercise 1 8 - 2 8 ( Algorithmic ) ( LO . 7 ) Donald dies this year, and under his will, a trust is

Exercise 18-28(Algorithmic)(LO.7)
Donald dies this year, and under his will, a trust is created in the amount of $6,686,000 with the following provisions: life estate to Cindy (Donald's spouse) and remainder to their children. His will also passes land (cost basis of $236,000 and fair market value of $708,000) to the Salvation Army for the site of a new homeless housing project.
Question Content Area
a. If a QTIP election is made, how much will these transactions reduce Donald's gross estate to arrive at the taxable estate?
b. If a QTIP election is not made, how much will these transactions reduce Donald's gross estate to arrive at the taxable estate?

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