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This year Nathan transferred $1 million to an irrevocable trust established for the benefit of...

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Accounting

This year Nathan transferred $1 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 all unified credit. What is the amount of gift tax, if any, must Nathan remit in 2017? Ignore the annual exception amount of $15,000.

A). 159,500

B). 155,800

C). 155,450

D). Zero- there is a $10 Million exemption equivalent

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