This is the third time when I post the same question because all previous answers were wrong.

Please help me with this.

Jones is seriously ill and has $6 million of property that he wants to leave to his four children. He is considering making a current gift of the property (rather than leaving the property to pass through his will). Assume all of his exemption equivalent was used and any taxable transfers will be subject to the highest transfer tax rate. (Refer to Exhibit 25-1 and Exhibit 25-2.) Required:

a-1. Determine how much gift tax Jones will owe if he makes the transfers now.

a-2. If he makes a current gift, how much estate tax will Jones save if he dies after three years, during which time the property appreciates to $6.8 million?

(For all requirements, enter your answers in dollars and not in millions of dollars.)

(For all requirements, enter your answers in dollars and not in millions of dollars.) a-1. Amount of gift tax a-2. Amount of estate tax savings EXHIBIT 25-1 Unified Transfer Tax Rates* Tax Base Equal to or Over $ 0 Not Over $10,000 20,000 40,000 60,000 80,000 100,000 150,000 250,000 500,000 750,000 1,000,000 10,000 20,000 40,000 60,000 80,000 100,000 150,000 250,000 500,000 750,000 1,000,000 Tentative Tax $0 1,800 3,800 8,200 24 13,000 26 18,200 28 23,800 30 38,800 32 70,800 34 155,800 37 248,300 39 345,800 40 *The applicable credit and exemption are zero for estates that opted out of the estate tax in 2010. Plus 18% 20 22 of Amount Over SO 10,000 20,000 40,000 60,000 80,000 100,000 150,000 250,000 500,000 750,000 1,000,000 EXHIBIT 25-2 The Exemption Equivalent Year of Transfer Gift Tax $500,000 600,000 625,000 650,000 675,000 1,000,000 1,000,000 1,000,000 1,000,000 5,000,000 5,120,000 5,250,000 5,340,000 5,430,000 5,450,000 5,490,000 11,180,000 11,400,000 11,580,000 11,700,000 Estate Tax $500,000 600,000 625,000 650,000 675,000 1,000,000 1,500,000 2,000,000 3,500,000 2011 5,000,000 2012 5,120,000 2013 5,250,000 2014 5,340,000 2015 5,430,000 2016 5,450,000 2017 5,490,000 2018 11,180,000 2019 11,400,000 2020 11,580,000 2021 11,700,000 *The applicable credit and exemption are zero for taxpayers who opt out of the estate tax in 2010. 1986 1987-1997 1998 1999 2000-2001 2002-2003 2004-2005 2006-2008 2009-2010**