Juan, married to Maria, died on March 6, 2021 leaving the following properties and obligations:

Philippines Canada
Real Property in Bulacan inherited from his father on May 12, 2018 with a fair value at that time of P 7,800,000, for
which a mortgage of P 1,100,000 was assumed; the fair value of the property at the time of his death is
10,500,000.00

Family Home with a fair value of P 24,000,000 with the following breakdown:
Land -bought out of communal funds of the husband and wife 16,000,000.00
House - constructed using the exclusive money of Juan, fair value at the time of death 8,000,000.00

Receivable from Pedro, a close friend, who became insolvent and is capable only of paying 70% of the debt; the debt
was from the exclusive money of Juan 600,000.00

Various Cash Deposits 15,000,000.00 10,000,000.00

Jewelries for the personal use of the wife, some are kept safe abroad 3,000,000.00 6,000,000.00

Vacation House:
In Tagaytay, gifted to Juan by his mother 2 years ago prior to his death 4,300,000.00
In Ontario, Canada 8,000,000.00

Other personal properties, exclusive to Juan 1,500,000.00 2,500,000.00

Apartment for rent, used as family business 1,250,000.00

Rent accrued prior to his death but unpaid only 4 months after his demise 600,000.00

Unpaid mortgage on real property in Bulacan 600,000.00

Partial loss on the apartment due to fire, losses claimed as deduction on his income tax return 150,000.00

Unpaid and accrued income tax on the rent accrued above 50,000.00

Proceeds of Life Insurance

Sun Life of Canada - Philippines, his wife is designated as the irrevocable beneficiary 1,400,000.00
Manulife, he designated his estate as the irrevocable beneficiary 2,000,000.00

Unpaid obligations 5,500,000.00 2,000,000.00

Losses on vacation house due to acts of god

In Tagaytay - due to typhoon on January 8, 2021 750,000.00
In Ontario - due to fire on April 9, 2021, but with an insurance recovery of P 1,000,000 1,250,000.00

Estate tax paid in Canada 1,750,000.00

Requirements: 30 POINTS
1. Compute the Gross Estate:
a. Exclusive estate in the Philippines (1 point)
b. Communal estate in the Philippines (1 point)
c. Exclusive estate in Canada (1 point)
d. Communal Estate in Canada (1 point)
e. Total Gross Estate (1 point)

2. Compute the Ordinary Deductions (total of communal and exclusive):

a. Losses (1 point)
b. Indebtedness (1 point)
c. Taxes (1 point)
d. Vanishing Deduction (3 point)

3. Compute the Family Home as a deduction (1 point)

4. Share of the Surviving Spouse (5 point)
5. Net Taxable Estate (5 point)
6. Estate Tax Due (1 point)
7. Estate Tax Credit (5 point)
8. Estate Tax Due and Payable (2 point)