BUSINESS AND TRANSFER TAXATION 5th Edition (BY: VALENCIA & ROXAS)SUGGESTED ANSWERS Ch !

t"# $: GROSS ESTATE 8 C%A&TER $ GROSS ESTATE Problem 3-1 1. False – should be including revocable transfers and transfers for insufficient consideration.2. False – depending on the citizenship and residency of the decedent.3. True4. False – common stoc only! preferred stoc is measured at its par value.". False – resident alien # properties $ithin and $ithout%. True&. True8. False – donation mortis causa is sub'ect to estate ta(.). True1*. False – only revocable transfer is ta(able. Problem 3-2 1. False – the relationship must be one degree of generation.2. True – +f he is a nonresident alien.3. False – the other $ay around4. True".

The properties left by a resident alien $hich are located $ithin and outside the3hilippines are re. The boo value is irrelevant because the properties left by the decedent are considered under li. . . 01 . .s a rule1 property donated by the decedent to a nonprofit andnonstoc educational institution shall not be considered in the computation of gross estate.2 / Problem 3-4 1. 0 1*.2. False – revocable designation. Problem 3-3 1. . The la$ provides that the valuation should be at the mar et value of the property at the time of the o$ner6s death. &. True&. False – e(clusively to $ife1*.8. . True). in the 3hilippines is 3"1***1***.%. -".4.". . The reportable estate of . .uidating concern .uired.4. The reportable gross estate is 321***1***.False – it $ill depend on ho$ the 'e$elry $as ac.8. False – surviving spouse capital is not included. 4eportable gross estate is 3%**1***. 5ven if .%. / ).uired to be reported for 3hilippine estate ta( purposes.t mar et value of 3&"*1***. is a nonresident Filipino1 hisproperties located outside the 3hilippines are reportable in the 3hilippines because he is a Filipinocitizen. 31*1***1***.3. /3.2.