Brokenshire College SOCSKSARGEN, Inc.

CED Avenue National Highway Lagao, General Santos City

Business and Transfer Taxation

Tax 101 /Tax 2– Midterm Examination
Teacher: William B. Cayanong Jr., CPA
Name: Lourdios J, Edullantes BSA-2

General Directions: Answer what is being asked in the problem.

Strictly follow the instructions. You have only one hour (1 hour and
15 minutes) to finish the exam. Any form of cheating (same
wordings/explanation with the other classmates, sources borrowed in
the internet) is highly discouraged. Once proved, will automatically
be zero. Good Luck!

Problem 1:

1. Frank Sinatra, a Filipino decedent, left the following to his

surviving spouse.
Properties by the decedent Amount
Residential House and lot (Family Home) 3,000,000
Inherited Property from his father (exclusive)
received within 5 years at 2,000,000,
subjected to estate tax 2,500,000
Other Properties including 300,000 death
benefits under R.A 4917 15,300,000
Mortgage assumed 100,000
Losses 225,000
Medical Expenses paid (within one year) 600,000
Claims against insolvent person 200,000
Claims against the estate 300,000
Transfer for Public Use 150,000

Given the data above, Construct the following:

1. Construct a property schedule under Absolute Community

Property with its corresponding Ordinary and Special
Deductions. Use the prescribed format in presenting the
data.
 exclusive commnal
Ordinary deductions
Inherited Property from his father 2,000,000 2,500,000
(exclusive) received within 5 years
at 2,000,000, subjected to estate
tax
Other Properties including 300,000 300,000
death benefits under R.A 4917
Mortgage assumed 100,000
Losses 225,000
Claims against insolvent person 200,000
Claims against the estate 300,000
(Vanishing deductions)
Transfer for Public Use (150,000)
Special deductions
Residential House and lot (family 300,000
home)
Medical Expenses paid (within one 600,000
year)

2. From the table constructed, Identify the following:

a.Total Exclusive Property 3,725,000
b.Total Community Property 2,650,000
c.Total Properties 300,000
d.Total Ordinary Deductions 3,125,000
e.Total Special Deductions 900,000
f.Vanishing Deductions 150,000
g.Share of the Surviving Spouse 1,325,000
h. Net Taxable Estate 7,700,000