Question: Rachel died in the current year and her executor is finalizing her estate tax return. The executor has determined that Rachels gross estate is $12,150,000

Rachel died in the current year and her executor is finalizing her estate tax return. The executor has determined that Rachels gross estate is $12,150,000 and that her estate is entitled to a charitable deduction in the amount of $500,000. In addition the estate has certain expenses including funeral expenses of $30,000. Rachel had a mortgage of $240,000 on her residence and unpaid bills at death of $4,000. Finally, the estate expects legal and administrative costs of $120,000. Rachel made a bequests to her sister for $600,000. Calculate the adjusted gross estate for Rachels estate.

A. $10,656,000

B. $11,156,000

C. $11,756,000

D. $11,650,000

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