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Question 1: Rachel died in 2020 and her executor is finalizing her estate tax return. The executor has determined that Rachel's adjusted gross estate is $12,750,000 and that her estate is entitled to a charitable deduction in the amount of $500,000. Calculate the estate tax liability, in 2020, for Rachel's estate.
Option 1: $260,000
Option 2: $268,000
Option 3: $2,660,000
Option 4: $5,045,800
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