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Block 11

Transfer Tax – Test bank

ESTATE TAX & DEDUCTIONS
THEORIES
1. An act whereby a person is permitted with the formalities prescribed by law, to control to a certain degree the
disposition of his estate, to take effect after his death.
A. will C. legitime
B. Succession D. device
2. The person whose property is transmitted through succession, whether or not he left a will.
A. successor C. legatee
B. heir D. decedent
3. The person called to the succession, either by the provision of a will or by operation of law.
A. Heir C. devisee
B. legatee D. decedent
4. Succession which results from the designation of an heir, made in a will executed in the form prescribe by law.
A. Testamentary C. intestate succession
B. mixed succession D. legal succession
5. Transmission of properties where there is no will, or if there is a will, the same is void or nobody succeeds in the
will.
A. testamentary succession C. legal succession
B. mixed succession D. escheat
6. Transmission of properties which is effected partly by will and partly by operation of law.
A. testamentary succession C. legal succession
B. mixed succession D. intestate succession
7. An heir to a particular personal property given by virtue of will.
A. Legacy C. devisee
B. successor D. legatee
8. An heir to particular real property given by virtue of will.
A. devise C. successor
B. devisee D. legatee
9. Part of the testator’s property which he cannot dispose of because the law has reserved it for certain heirs who
are called compulsory heirs.
A. legitimate C. free portion
B. legitime D. estate
10. A will which is entirely written, dated and signed by the testator.
A. hieroglyphics C. holocaust
B. holographic D. own will
11. Which of the following statements is correct?
A. The gross estate of a resident citizen decedent would not include all properties, whether real or personal and
whether within or without.
B. The gross estate of an American decedent who was a resident of the Philippines includes all properties in
the Philippines only.
C. The gross estate of a Filipino decedent who was residing in Australia would include all properties
regardless of location.
D. The personal property of a non-resident alien is not included in the gross estate in the Philippines if they are
intangible.
12. In computing the gross estate of a decedent:
A. If he was a non-resident, but citizen of the Philippines, tangible and intangible properties, regardless of
location, shall be included
B. If he was a resident who was not a citizen of the Philippines, tangible and intangible properties, regardless
of location, shall be included
C. If he was a non-resident who was not a citizen of the Philippines, tangible and intangible personal properties,
located in the Philippines, shall be included.
D. All above statements are correct.
13. Which of the following is not included in the gross estate?
A. Revocable transfer where the consideration was not sufficient
B. Revocable transfer where the power of revocation was not exercised
C. Transfer under a general power of appointment where the consideration was not sufficient
D. Transfer under a special power of appointment
14. Which of the following is not included in the gross estate?
A. Transfer in contemplation of death where the consideration is not sufficient

unpaid medical expenses b. By funeral expenses incurred before internment c. 1st statement: For marriages on or after August 3. Income of property under (a) is exclusive property under both systems d. 1988. c. only that which was actually incurred in the Philippines 22. are conjugal properties b. the zonal value. At its fair market value at the time of death B. Which of the following statements is wrong? Deduction for funeral expenses shall be allowed: a. both statement are false. d. but the second statement is false. Amounts receivable under RA 4917. Only if paid out of the estate d. Property under (a) may be conjugal or community when expressly declared by the benefactor as conjugal or community 18. Which of the following statements is wrong? For. In real property. the first statement is true. Income out of exclusive property of the wife is conjugal property d.000. Both statements are true d. One of the following statements is wrong: a. Revocable transfer where the power of revocation was not exercised C. which may be higher than the assessed value D. sold for cash during the marriage when the value was P1. The gain is conjugal property 19. Vanishing deduction c. Property acquired during the marriage by inheritance or gift is exclusive property under both systems b. Both statements are false 17. Statement 1: Losses can be deducted only if incurred during the settlement of the estate.000.000. the first statement is false. must be incurred during the settlement of the estate. Only the second statement is true c. died on May 5. c. Whether paid or unpaid b. Shall in no case exceed P200. Which statement is wrong? The gross estate shall be valued: A. at book value 16. Proceeds of life insurance where the beneficiary designated is the executor and the designation is irrevocable D. Property owned before the marriage is exclusive property under both systems c. if not compensated by insurance or other form of indemnity.000 resulted in gain of P400. in the absence of a written agreement between them. is the system of absolute community of property. Which of the following deductible for the purposes of computing the net distributable estate? a. 23. 1988. a decedent who was married at the time of death. Income out of the labor of the husband is conjugal property c. if arising from earthquake. B. In the case of common shares of stock. For a non-resident alien. A resident Filipino. b. At not more than P200. both statement are true.000 c. standard deduction d. if the loss arises from sale of capital assets. Which statement is wrong? Losses are deductible from the gross estate: a. At its fair market value at the return is due C. Shall in no case exceed 5% of the gross estate b. Proceeds of life insurance where the irrevocably designated beneficiary is the mother 15. Reduces the distributable estate by the allowable 5% of the gross estate d. RA 4917 21. d. 2nd statement: There may be a property relationship of conjugal partnership of gains even if marriage was on or after August 3. Statement 1: Losses can be deducted only if the property lost is included in the gross estate. a. 2012 and his estate incurred losses as follow: . but the second statement is true. Only the first statement is true b. 24. b. there may be deductible funeral expense a. a.000 20. and during the marriage. Which of the following is correct? Under the system of conjugal partnership of gains and absolute community of property: a. Property inherited when the fair market value was P600. the property relationship between husband and wife.

Funeral expenses are deductible to the extent of 5% of the total gross estate but not exceeding P100. b. c. 2011 of household furniture also not compensated by insurance. Represents obligations enforceable during the lifetime of the decedent. Includes properties transferred inter vivos. b. died testate on May 10. What percentage of deduction will be used in computing the amount of vanishing deduction? a. 1st loss is not deductible and 2nd loss is deductible. Shall be in the gross estate at P300. d. . If the decedent was a citizen or resident of the Philippines. b. Means device in a last will and testament to the government. d.000 from the gross estate against exclusive property. not citizen of the Philippines. A deduction from the gross estate at P100. 2013. 28. 27.000 from the surviving spouse. d. Among his gross estate are properties inherited from his deceased father who died on April 4. c.000 against exclusive property. If unpaid mortgage of a non-resident. 1st loss: From fire on July 2. Income tax paid on income received after death. Shares of stocks being intangible property shall be included in the decedent’s gross estate wherever situated. the property need not be located in the Philippines. Which statement is correct? Real property with a cost of P300. 29.000. Unpaid property taxes accrued in the year of death. Which of the following is deductible from the gross estate? a. A deduction of P50. 60% of the value taken as basis for vanishing deduction. c. which of the following rules is correct? a. c. the property may not be located in the Philippines. c. the property should be located in the Philippines. 000.000 from the gross estate against conjugal property. 31. 32. Means legacy in a last will and testament to the government. 30. c. If the decedent was a citizen and resident of the Philippines. 25. there should always be two deaths within five years from receipt of property. Vanishing deduction must be subject to limitations. incurred during the marriage and secured by a mortgage of exclusive property is: a. d. c. 2012 of improvement on his property not compensated by insurance. 2010. 2nd loss: From flood on July 2. d. Shall be in the taxable net estate at P800. Should always be evidenced by a notarized document. a. both losses are deductible from gross estate. d. b. d.000.000. Donor’s tax accrued after to death. If the decedent was a not citizen nor resident of the Philippines. A deduction from the gross estate at P100. but with a receivable of P50.000 against conjugal property.000 and a fair market value at the time of death of P1.000. 000. b. Which statement is correct? Claims against the estate. 1st loss is deductible and 2nd loss is not. 100% of the value taken as basis for vanishing deduction. d. is sufficient for deductibility if a valid obligation under the law on obligations. 000. Shall be in the gross estate at the decedent’s equity of P800. b. 33. d. A citizen of the Philippines and resident of Baguio City. 000. c. Estate tax paid to a foreign country. Shall be in the gross estate at the decedent’s equity of P100. A resident decedent was married under the conjugal partnership of gains. but subject to mortgage of P200. 26. b. An obligation of P100. the property should be included in the Philippine gross estate. will not include legacies to charitable institutions. both losses are not deductible. In determining the taxable net estate of a decedent. Which is wrong? Deduction for transfers for public purpose: a. 80% of the value taken as basis for vanishing deduction. Statement 1: For a vanishing deduction. as deduction from the gross estate: a. Which of the following statement is correct? Property subject to vanishing deduction should be: a. the property should not be located in the Philippines. Real estate abroad is not included in the gross estate of a decedent who was a resident alien. b. 40% of the value taken as basis for vanishing deduction. A deduction of P100. a.000. If the decedent was a citizen but a resident of the Philippines. b. c.

d. 36. The donation has to pay the estate tax in addition to the donor’s tax previously paid. The donation shall be required to pay the estate tax so that the estate tax computed shall be reduced by the donor’s tax already paid. even if the heirs have dissipated the inheritance. c. Medical expenses b. both in the Philippines and with certificates of the Barangay Captains. but the second statement is false. Identify. Resident or citizen of the Philippines b. d. Both statements are false. There can be a deduction for two family homes if their aggregate value does not exceed P1.000. as ascertained by the Bureau of Internal Revenue.000. but second statement is true. b. b. Non-resident alien c. b. The Bureau of Internal Revenue shall have a lien on the properties of the estate once a demand for payment had been made. The donation shall not pay any transfer tax anymore.000. Deduction may be claimed for a family home of a non-resident of the Philippines located outside the Philippines. a. d. with vanishing deduction and unpaid mortgage or indebtedness. The Bureau of Internal Revenue cannot ask the executor or administrator to pay because he would have been discharged from liability for the estate tax to the heirs once the estate tax had been paid. Both statements are true. Medical expenses deductible from the gross estate: a. d. . except one. c. Vanishing deduction c. May be allowed for family homes (one in the City and another in the Province). Estate tax credit for foreign estate tax paid is available to the estate of: a. None of these 40. The Bureau of Internal Revenue can still ask the executor or administrator to pay. c. b. There can be no deduction for funeral expenses entirely incurred outside the Philippines. There are no special deductions from the gross estate b. c. A family home is always conjugal/community property. The following expenses. a deficiency estate tax has to be paid: a. based on cost. d. d. Only if the decedent was a citizen or resident of the Philippines at the time of death. A single person who is not a head of family may not have a deduction for family home. Only once statement is correct. Claims against the estate 39. d.000. Judicial expenses d. c. which of the following is true? a. Need not be on the illness resulting in death.000. c. b. 37. There can be a deduction for transfer for public use. should be paid or take place within a certain period in order to be deductible from the gross estate of a citizen or resident decedent. Shall be deducted at lesser than P1. and there can be a refund for the wrong payment of the donor’s tax. One of the statement is wrong. 35. Which of the following statements is false? When an estate tax return had been filed and the estate tax had been paid but subsequently. if the executor or administrator did not ask for a written discharge from liability from the Bureau of Internal Revenue. whichever is lower. There can be a vanishing deduction.000 if. 41. The Bureau of Internal Revenue can ask payment from the heirs to whom the estate had been distributed. Deduction for family home: a. When a donation which paid a donor’s tax was actually a donation mortis causa. 38. The donation shall be required to pay the estate tax on its proper valuation at the time of death. All kinds of decedents d. The first statement is true. Which statement is true? a. b. Shall be allowed if the family home is in the Philippines. Is actual medical expenses or P500. the value of the family home is already reduced to zero. there should always be two transfer of property within five years whether the first transfer be gratuitous or onerous. 34. not citizen of the Philippines: a. Which statement is wrong? For a non-resident. Which is the exception? a. c. Must not be paid before death.000. because of errors in the return. Statement 2: For a vanishing deduction. The first statement is false. Shall be at a maximum of P1.

b. The estate tax accrues from the moment of: a. Successor 49. if any: a. d. Is invalid & the tax will not be credited at all. Devisee c. Devisee 44.of the business of which is located in the Philippines. Succession d. Estate tax is transfer tax on donation mortis causa. Revocable transfers are includible whether or not the right to revoke is exercised. The fixing of notice of death b. a. Legal succession d. d. Succession wherein the decedent did not leave any will: a. Successor 50. Heir b. c. Which statement is wrong? a. The amount allowed is 5% of the gross estate or the actual expenses whichever is lower. Estate tax is synonymous to inheritance tax. Transfer contemplation of death for adequate consideration is still includible in the gross estate. Shares. The actual expenses must be paid from the estate or chargeable to it. Capital d. Which statement is incorrect about funeral expenses allowed? a. b. b. Estate transfer c. One of statement is false: a. c. Legatee d. Exempts the property from estate tax. 53. Heir b. . Which shall not form part of the gross estate of a decedent: a. obligations or bonds have acquired a business situs in the Philippines. Donation b. d. Shares. The death of the decedent d. All of the following are considered intangible in the Philippines. In succession. obligations of bonds issued by any foreign corporation of such shares. 46. Shall form as a tax credit to be deducted from the estate tax due. Shares or rights in any partnership. The filing of estate tax return 45. It refers to a mode of transferring & acquiring properties left by the decedent. b. Legatee d. A person who inherits real property thru a will: a. e. Shares obligations or bonds which issued by any corporation or sociedad anonym organized or constituted in the Philippines in accordance with its laws. The successor can be made liable for the obligations of the decedent beyond the value of the asset he received. Transfer passing special power of appointment d. 54. Claims against insolvent person should be included in the gross estate even if uncollectible. Estate b. b. Franchise which must be exercised in the Phil. Which statement is false about succession? a. c. 48. 52. business or industry established in the Philippines. b. The gift tax paid on a donation mortis causa. The allowed deduction can never be more than the actual expenses paid.42. d. a. rights & obligations of a person which are not extinguished by his death & those which have accrued thereto since the opening of succession. Intangible personal property of non-resident alien decedent without reciprocity law b. The expenses necessary for burial even if paid by friends are also allowed as deduction. Voluntary succession c. fruits and credits maturing after the death of the decedent pass to the heirs even if they were not subjected to estate tax. The object of estate tax is to tax the transfer of the property from the dead to the living. Revocable transfer c. d. c. c. A person who inherits personal property thru a will: a. Transfer passing under special power of appointment is excluded from the gross estate. Devisee c. Expiration of a months after death c. The property. Testamentary succession 51. obligations or bonds by any foreign corporation 75%. Execution of a will 43. d. Has no effect since the gift will be subject to another gift tax. except: a. c. Mixed succession b. the successor can refuse the inheritance. Life insurance where the executor is the beneficiary & it is irrevocable 47. Estate tax is an excise tax. Inheritance c. The successor inherits all the transmissible property of a decedent including his liabilities. In succession.

The insolvency of the debtor must be established. False b. April 30. Subject to donor’s tax b. c. Transfer for public purposes order to be deducted must be mortis causa in character. April 30. False. however. in B’s will when he was old already. The transfer is subject to estate tax c. Gross estate exceeds P2. 1st statement: The court may authorize the executor or administrator to distribute the estate if in its sound discretion it believes that the heir badly needs his share. The heirs or successors b. b. Gross estate reaches P20.000 b. D and F. c. 1st statement: A died giving B power to appoint a person who will inherit A’s house and lot. a. The last day for the payment of estate tax may be extended. c. In filing the estate tax return. 57. True. A died.2015 b.000 c. The heirs or succession d. The administrator or executor 63. 20028 c. Subject to estate tax a bona fide transfer d. True 65. however can only choose among C. The transfer is subject to donor’s tax b. Medical Expenses must be incurred within 1 year prior to the decedent’s death. In the second year however. One of the following is incorrect: a. d. a. True c. Gross estate reaches P2. True. False b. They must be duly notarized. The property must be previously subjected to a transfer tax or income tax. 2013 d. March 21. a CPA certificate is required when: a. September 30. The payment of estate tax is a personal liability of a. September 30. The decedent b. Gross estate exceeds P200. 2013 62.55. d. The above is a tax-exempt transfer. A died leaving a farm land. B decided to transfer the property to C. he transferred the ownership thereof to B but subject to the condition that C will have the right to use the land fora period of ten years (Usufruct) in the seventh year. False d. B. The car should form part of A’s gross estate. The estate itself 64. The property must be located in the Philippines. April 30. Which statement is incorrect about claims against insolvent persons? a. The administrator in testamentary succession c. . A died leaving a house and lot to B March 31. 2009which was questioned by C and it is under litigation but the parties have stated an extra-judicial settlement.000 even without required certification that the estate tax has been paid. The transfer is both an inclusion and exclusion from the gross estate d. b. 2009 b. 2010 c. A donation inter vivos but due to thought of death is. They must be included in the gross estate even if uncollectible. 2nd statement: The administrator or any of the heirs may however upon authorization of BIR withdraw from the decedent’s bank up to P50. Taxes to be deductible must accrue before the decedent’s death. The taxpayer in estate tax is: a. Which statement is false about vanishing deduction? a. 2009 61. 2011 d. until. 56. Subject to inheritance tax 59. True. False d. C died and C’s will be surrendered his over the land to B. It pertains to a property presently found in the gross estate. False. True 66. The deduction is only the uncollectible portion.000 60. The property was received by the decedent within 5 years prior to his death. False. 2nd statement: During A’s lifetime. Losses must occur also before the decedent’s death to be deductible.000. October30. b. he decided to give B as gift his (A) car subject to the condition that if B does not become a CPA within 3years. The estate as a juridical entity c. a. False. True c. d.000. a. 58. The executor in voluntary succession d. a. True.000 d. In his will. The last day for filing the estate tax return is a. September 30. A shall revoke the transfer. The transfer from B to C is subject to estate tax. Subject to estate tax if for inadequate consideration c.

20% 75. Prior interest c. 1st statement is true d. Decedent d. Estates are unregistered c. Where gross value of estate exceeds Php 20. 2nd statement: Donation mortis causa is subject to donor’s tax a. Both are false c. 10% b. One of the following is not an exemption or exclusion from the gross estate: a. Estate tax return is required in cases of a.000 c. Executor c. 1st statement: Only the estate of a citizen or a resident alien at the time of death can claim tax credit for any estate taxes paid in a foreign country. Annulment . except a. Decedent’s interest b. 1st statement: The perfection of a donation inter vivos is at the moment when the donor knows the acceptance of the done. Appraisal surplus d. Gross estate reaches P200. Gross estate exceeds P200. 2nd statement is true c. Properties outside the Philippines of non-resident Chinese decedent c. the fair market value at the time of donation or the value fixed by the assessor. Revocable transfer 70. a. 2nd statement: Estate tax credit is a remedy against international double taxation. Both are false c. The following are included in the gross estate. Both are true b. Transfers subject to tax b.67.000 b. Any legal heir 73. 2nd statement is true 71.000. 1st statement: If the gift is personal property. Shares of stocks of San Miguel Corporation of a non-resident Mexican. whichever is lower? a. d.000 d. Gross estate reaches P2. Both are true b. 1st statement is true d. When the done or beneficiary is stranger. Administrator b. 2nd statement: If the gift is real property. Gross estate exceeds P20. Both are true d. The following shall file the estate tax return. The notice of death must be filed when: a. except a.000 d. The merger of usufruct in the owner of the naked title 69.000 68. The tax payable by the donor shall be a. Capital or exclusive of the surviving spouse b. 30% c. 2nd statement is true 74. the fair market value of the property given before the time of the gift shall be the value of the gross gift. Both are false 72. 1st statement is true b. 5% d.

Riceland in Legazpi. 4.750. 1.560. resident alien or a non-resident citizen- A.000 e. 2. married to Juana. 4.000 D.000 h. The exclusive properties of Juan under conjugal partnership of gains-- A. unidentified when and by whom acquired . 5.910.000 e. USA 25.000 D.975. 1.000 h.000 B.000 D.975. 4.000 g. 23. 52. 4. The gross estate if the decedent was a resident citizen.320.320. 3. 1. earned during marriage . Underwear(panties. with business situs in the Philippines. Franchise exercised in New York. USA 55.825. brought into marriage by H. Income of plantation in Davao earned during marriage . The following properties were left upon his death: a.000 6.000 B. The community property of the spouses under absolute community of property regime-- A.000 D. Foreign shares. Franchise exercised in the Philippines 300. Bus in Cebu.250. 30% of business in the Philippines.000 d.000.000 1. died.000 B.000 7.000 f. 1.000 D. Income of Riceland in Legazpi earned during the marriage . Foreign shares.000 i.000 j. Jewelries inherited by Juana during marriage from her mother . 2. 1.610. 3.000 i.000 C. 1. 85.000 C.000 d. The gross estate if the decedent was a non-resident alien (with reciprocity)- A. .910. Car in Philippines 70.287. The gross estate of Juan if the spouse were under conjugal partnership of gains-- A.000 b.460.910.560. Shares of stocks with Aga corp. inherited by Juana before marriage .000 k. brassiere) of Juana brought into Juana . The gross estate of Juan if the spouses were under the absolute community of property regime-- A.815. 5.000 2.475.3. 5.000 c. Foreign shares. 4.420.070.000 C.770.250. Durian plantation in Davao.610.000 3. 55.000 C.000 . 1. PROBLEMS Problem 1 Liwayway died leaving the following properties: a. 15. earned by Juana during marriage . 4. House and lot in the Philippines (mortgaged for P300. The gross estate if the decedent was a non-resident alien (no reciprocity)- A.000 B.000 g.000 Problem 2 Juan. Car in Hongkong 60.000 c. Condominium unit in Hongkong 1. 1.475. 60% of business in the Philippines 75. 3. 90% of business in the Philippines 60. certificate kept in New York.000 B.000 4. inherited by Juan during the marriage .750.000 D.000. 1.475.760.000 D. Domestic shares. 2. 4.000 b. 5.610.760.000 B.3. 50.287.000) 1. Dividends from Aga Corp.000 C.000 C.000 f.000 B.000 5.5.750.000 j.620.320. Income of passenger bus earned during the marriage .000 C.475.825. Cash.

000 P1.700. Shall be in the taxable net estate at P500.500. 90.000 Shares of stock of a Canadian corporation.000 b.000 C.000 while the expenses amount to P900.000 750.000 D.000 Problem 4 Al.000 Shares of stock of a domestic corporation 200.800. Shares of stock 300.000 and a fair market value at the time of death P900. had the following data on properties and rights at the time of his death and their values. 77.000 Claims against the estate 3 0.000.050.850.000 9.000 220.000.000 B. Al was able to pay P200. 50. P 2.000 6.000 Transfer to City of Manila for public purpose 50.000 P 200. The amount of vanishing deduction is— A.500. but subject to a mortgage of P250.350.000 C. 1. P3. A revocable transfer with a consideration received: Consideration received P200.000 250. The amount includible in the gross estate is-- A.000 B. it had a value of P2.000 before his death.250 5.000 Value to include in the gross estate is: A.000 1.000 Included in the gross estate is his family home.080.1.000 Shares of stock of a Japanese corporation 300. 1.125 B.800.00 8.500 C.000 B. The gross estate of Al was P4.000.000 Claims against insolvent persons 20. A citizen of Japan. residing in Hongkong. It was purchased on Feb. Delivery truck 400.000.000.000 c. P4.000 The land had an unpaid mortgage of P300.000 C. Personal property with a cost of P400.000 Fair market value of property at the time of death 250.000 a. Coconut plantation P1. 300.000 Receivable under a life insurance with an insurance company 250.000 900.625 D.000. 250.000 c.000 450.000 P1. 181.000 at the time it was inherited from his father on January 5.200.000 Land 500. At the time of his death.000.000 D. 1.000 d. 100. 2013: Prior decent – father Present decedent Car P250. 2010. Shall be in the gross estate at the decedent’s equity of P650. in contemplation of death 2.000.000 2.000 Philippines only Philippine peso deposit in Metrobank 500. Shall be in the gross estate at P400. Townhouse.000 RA 4917 80. doing business in the 100.000 doing business in Hongkong The gross estate that should be reported in the Philippines is: A.000 1. Real estate. 2012 at P1. P4.000 d. Revocable transfer: a.500. Shall be in the gross estate at P900.000 broken down as follows: Actual funeral expenses P 175.000 420. Philippines 2.000 7. 173.8M.300.000 2.000 D. had the following data at the time of his death on July 20.000 Real estate. decedent.000 Fair market value of property at the time of transfer 300. with properties in Hongkong and the Philippines. Hongkong P1.000 b.000. Mitsubishi pajero 1.000 .Problem 3 Market value – date of Transfer Death Consideration 1.000 Medical expenses 545.

420.000 d. and used at the time of his death as home for his family.000.000 d. married. A citizen and resident of the Philippines died on October 5. P 1. died. P3. P40.200.8.000.000 b. On March 5. P18. P2. P1.000.000 Cash on hand and in banks: Income from unidentified sources 300. 250.000. P15.000 d.000.660.000 d.000 c.560.000 and P100.500.000 d. 2013.000 ITEMS 9 THROUGH 11 ARE BASED ON THE FOLLOWING INFORMATION: A resident citizen died with properties constituting his gross estate of P5. The allowable deduction for funeral expenses is: a. Kenkoy inherited property on November 1. P25. If the decedent was a non-resident.000 c. with a fair market value and a mortgage at that time of P200.000 received by inheritance from the 1. None of these 15.750 b. P 3. Disregarding accrued interest on the mortgage indebtedness.600.600. ago and before the marriage (current account) 40.000 The gross estate is: a.000 Received as gift six yrs.000 b.000 Cash (including P500. P2.000 14.000 when acquired: P20.000. acquired during the marriage with her income 50. Some other amount ITEMS 12 and 13 ARE BASED ON THE FOLLOWING INFORMATION: Properties in the Philippines – P500.000 b. P3.500.000 Other properties: Owned before the marriage 90. Actual funeral expenses outside the Philippines – P10.000 b. he borrowed P200. P300.000 Clothes acquired during the marriage . used as family home (with a FMV of P420.500. P30.000 father ) . 12. Actual funeral expenses amounted to P220.400. A citizen and resident of the Philippines. with income during the marriage: For use of the decedent 60.000and a mortgage of P120.750 b. Actual funeral expenses in the Philippines – P20. P1. the deductible funeral expenses is: a.000 c. 200. 500.000). 2012. under the property relationship of conjugal partnership of gains. P25.000. If the decedent was a citizen or resident of the Philippines.200. deduction against exclusive property is: a.000 For us of the wife 70. He married on January 10. 2.000. He was a married and the property relationship during the marriage was absolute community of property. P3. 2014.000 c. 9. 2010. P 1. P40.580. P 1. P200.625 c.000 b.000 11.000 From a sale at a loss of exclusive property 1. 220.000 13.000. purchased with cash received as gift from the mother during the year 500.000 c.000 Car.700.000 Land and building inherited from the father 11/2 years ago (with a fair market value at that time of P1.000 House and lot acquired by inheritance before the marriage 4-1/2 yrs.000 was paid by the decedent before he died) Jewelry of wife. Kenkoy died without paying any of the mortgage indebtedness.000 from a bank and mortgaged the same property.P100.000 d.660. He left behind properties with market values as follows: Agricultural land P 100.000 d.000 Acquired during the marriage 20. The distributable estate was diminished by: a. The taxable net estate is: a.000. None given 10. not citizen of the Philippines.000 c.100. leaving the following properties: Real and personal properties acquired during the marriage P3.000 ago.000 and other expenses and claims which are deductions from the gross estate amounted to P1. P18. Properties outside the Philippines – P300. the deductible funeral expenses is: a. respectively.

If in the preceding number. The deductible medical expenses is: a.P200.000 b. P945. fair market value P100. 75. 50.000 24.000 b. died on October 10. 000 b.000 shares.000 Family home built by the spouses on the inherited land 800. Based on the original problem but assuming the PLDT shares of stocks (PLDT) are not listed in the Local Stock Exchange.600.000 c.000 d. 130. P500.000.P2. The deductible funeral expenses is: a.000 d. Claims against conjugal properties 600.000 b.000 d. P3.000 Bank deposit in USA 80.000.000 d.195. par value per share was P50/share. P900.808.P1. P1.000 d. If the decedent is a non-resident citizen his gross estate is: a. The gross estate should show the said shares at: a. The deduction for family home is: a.908.000 c.500. P450.000 Shares of stocks of PLDT.000) P6. The vanishing deduction is: a.000 c. P4.000 Deduction for family home is: a. Its retained earnings was P2.000 Judicial expenses 500. P200.250.000 Receivable from debtor in Phil.000 c. 20. January 2012 600.808.000 c. P460.000 c.000 b. If the decedent is non-resident alien his gross estate is: a.650.000 c. P1.650.000 20.000 Other obligations 100. P1.000 when inherited) 100. P600.000 75% of the business in the Phil. P450. 2010. 530.000 d.000 inherited 4 /2 1 years ago) 4.000 b.000 c. The taxable net estate is: a.000 d. leaving the following properties.P1.000 d. (zonal value 750.000 Exclusive properties (including cash of P500. P500.000 The vanishing deduction is: a.000 Questions 22 through 24 are based on the following information: A decedent left the following properties: Land in Italy (with P1M unpaid mortgage) P2.500. P92.070.000 b.000 c. Phil.000 17.000 Receivable from debtor in USA 100. rights. P3.000 22.P1. P138.000 19.000 Land in Davao City.000 d.000 25. P500.000.P2.000.000 and amount receivable under RA 4917 of P200.000 B.000 b. P3.250. A resident decedent was married at the time of death and under the system of conjugal partnership of gains. P1. P1. P3. P100.050.P1.000 d. P3. 080.000 Medical expenses unpaid.000 16.000 .00 Unpaid mortgage on the land and building inherited (from an original of P600. obligations and charges: Conjugal properties (including a family home of P3. Other personal properties 300. Phil.000 23.000 Bank deposit in Phil. P350.000. 250.000 Franchise in USA 100. P400. P4. the company’s outstanding shares were10.000 Funeral expenses 350.000 Shares of stock of ABC. Still at P75.000 c. inherited before the marriage.000 18. foreign corporation 125.000 b. reciprocity law can be applied the gross estate is: a.P184.000. & there are 1.000 c. P300. P1.000) 500.000 shares at the time of death.000. P945.000 Items 17 through 21 are based on the following information: A citizen and resident of the Philippines.070.000.908.000 21. P500. P1. Among the properties in the gross estate were: Land.

000 36.000 37. P6. P401. P20.000 *Car.000 but ¼ only was incurred with in 1 yr before death.000 c.500 d.000 d. Based on the preceding number.730.800.000 b. acquired before marriage 6M *Income from rest house in Cebu 600k *Condominium in Davao. the gross state is: A: 2. Filipina.000 b. 70% of the business is located in the phil. The deductible funeral expense is: a. b.000 34. The total deductions excluding share of surviving spouse and special deduction is: a.000 29.000.480.610.800. The gross estate of a non-resident alien is P2.000 d.000 at 24%per annum. The residential house (certified family home is mortgaged with unpaid balance of P180. 100k *Shares of stock in a foreign corp. P891.000 d.3M *Jewelry. How much is the community properties under absolute community of property? A: 23. The taxable net estate is: a. Q: How much is the gross state? A: 3. Actual funeral expenses amounted to P250.000 c.500 b. 200k *Car in Manila 500k.000 c.000. P326. properties: *Rest house in Cebu. The gross estate is: a. How much is the gross estate under Conjugal partnership of gains? A: 18.000 c. Judicial expenses reached P150. inherited by wife during marriage (the decedent provided in his Will that it shall form part of the common properties of the spouses) 1. P25. The 900 sq. P60.P900. 75% of which is from abroad. but assuming Ana is a non-resident alien. P4. Shares of stock in a domestic corp.P101.000 d.160.000 but ½ of which is non- deductible.000 30.000 b. P4. P25.510. P5.000 d.000.000 28. acquired during marriage 10.P1.510. P250. P0 26.280.050. the deductible funeral expense is: a. the commercial land was mortgaged at the Phil.000.000 Mr.000.000 b. the gross state is: A: 3. m. brought to marriage by wife 3. 60% of the business located in the Phil. Medical expenses reached P600. 2011. The deduction for family home is: a.6M *Income from condominium in Davao 360k *Town house in Quezon City. P80. J.250 b. Continuing the preceding number.500. The actual funeral expenses totaled to P80. 950. Based on the preceding number (the same world G.P750. P1. On January 1.5M *Income from town house in Quezon City 1.000 c.000 27. P80.000 d. died in Syria leaving the ff. acquired during marriage for exclusive use of the wife 200k 35.016.500 c. P4. Mondo died leaving the ff. Q: how much is the conjugal properties under conjugal partnership of gains? A: 12. 32.500 Ana. National Bank for P200.P855. residential land is the family home’s lot. P2. properties: *House and lot in Syria 1M *Vacant Lot in Manila 2M.)but the decedent is a non-resident citizen.E. ¼ of which was paid by his employer.000 33.000 as of the date of death).000 . and the rule of reciprocity applies.P201.000 31. P655.