John Jamison transferred $200,000 of tax exempt bonds to a trust for the benefit of his grandchildren 2 years ago. He died this year. Assume the gift tax paid was approximately $60,000. What amount is includible in his gross estate. If the transfer was made to his spouse what amount would be includible in his gross estate?

a) The $60,000 gift tax; however, nothing would have been includible if he had transferred the bonds to his spouse as no gift tax would be due.

b) The $200,000 in tax exempt bonds less the $60,000 gift tax; however, nothing would have been includible if he had transferred the bonds to his spouse as no gift tax would be due.

c) The $200,000 in tax exempt bonds less the $60,000 gift tax; however, nothing would have been includible if he had transferred the bonds to his spouse $200,000 in tax exempt bonds less the $60,000 gift tax would be due.

d) The $60,000 gift tax; however, nothing would have been includible if he had transferred the bonds to his spouse the $60,000 gift tax would be due.