Radar company sells bikes for $300 each. the company currently sells 3,750 bikes per year and could make as many as 5,000 bikes per year. the bikes cost $225 each to make: $150 in variable costs per bike and $75 of fixed costs per bike. radar received an offer from a potential customer who wants to buy 750 bikes for $250 each. incremental fixed costs to make this order are $50,000. no other costs will change if this order is accepted.

In 2015, lori assigned a paid-up whole life insurance policy to an irrevocable life insurance trust (ilit) for the benefit of her three children. the ilit contained a crummey provision for the benefit of each child. at the time of the transfer, the whole life insurance policy was valued at $200,000, and since lori had not made any other taxable gifts during her lifetime, she did not owe any gift tax. lori died in 2016, and the face value of the whole life insurance policy of $2,000,000 was paid to the ilit. regarding this transfer, how much is included in lori’s gross estate at her death?