INVENTORY TAKING

Mr. PapasaNaBaAkoDito died December 31, 2020 and the Executor conducted inventory taking on
the same date with the following properties:

LOCAL-LOCATED PROPERTIES
EXCLUSIVE PROPERTIES

PROPERTY 1: REAL PROPERTY - LOT

LOT 1: 1,000 square meter lot in Sampaloc, Manila with the following valuation:
o Assessed Value determined by the City of Manila, P20,000 per square meter
o Zonal value as determined by the CIR P18,000,000
o Fair Market Value by Independent Assessors P20,000,000

LOT 2: 1,000 square meter lot in Quezon City with the following valuation:
o Assessed Value determined by the Quezon City, P15,000 per square meter
o Zonal value as determined by the CIR P25,000,000
o Fair Market Value by Independent Assessors P20,000,000

LOT 3: 1,000 square meter lot in Makati City with the following valuation:
o Assessed Value determined by the Makati City P15,000 per square meter
o Zonal value as determined by the CIR P20,000,000

PROPERTY 2: SHARES OF STOCK

COMPANY A: 100,000 Preferred Shares – Listed in PSE under Initial Public Offering (IPO)
o Outstanding Shares – 800,000 shares with PhP10.00 par per shares
o Retained Earnings – PhP3,000,000
o Mean Value of the Preferred Shares in PSE – PhP15 per share

COMPANY B: 100,000 Ordinary Shares – Not Listed in PSE but actively trading
o Outstanding Shares – 1,000,000 shares with PhP10.00 par per shares
o Retained Earnings – PhP5,000,000
o Mean Value of the Shares in PSE – PhP15 per share
o Net Adjusted Book Value – PhP10 per share

COMPANY C: 100,000 Preferred Shares – Not Listed in PSE

o Outstanding Shares – 1,000,000 shares with PhP10.00 par per shares
o Retained Earnings – PhP5,000,000
o Mean Value of the Shares in PSE – PhP15 per share
o Net Adjusted Book Value – PhP20 per share
PROPERTY 3: REAL PROPERTY - HOUSE

House A: FMV at the time of Transfer PhP 6,000,000

FMV at the time of Death 6,000,000
Consideration Received 3,000,000

House B: FMV at the time of Transfer PhP 5,000,000

FMV at the time of Death 6,000,000
Consideration Received 4,500,000

House C: FMV at the time of Transfer PhP 8,000,000

FMV at the time of Death 6,000,000
Consideration Received 7,000,000

House D: FMV at the time of Transfer PhP 6,000,000

FMV at the time of Death 5,000,000
Consideration Received 8,000,000

House E: FMV at the time of Transfer PhP 5,000,000

FMV at the time of Death 6,000,000
Consideration Received 5,000,000

OTHER PROPERTIES
Exclusive Properties:
Land A, acquired through Purchase PhP 2,000,000
Land B PH, acquired through Inheritance last 12/31/2017 – FMV @ Death 15,500,000
Land B PH, acquired through Inheritance last 12/31/2017 – FMV @ Transfer 7,500,000
Land C USA, acquired through Inheritance last 12/31/2018 – FMV @ Death 9,000,000
Land C USA, acquired through Inheritance last 12/31/2018 – FMV @ Transfer 3,000,000
Residential House and Lot 5,000,000
Farm Lot with Mortgage in favor of BDO for PhP 1,000,000 2,000,000
Shares of Stock – Domestic Corporation 2,500,000
Shares of Stock – Foreign Corporation 2,500,000
Other Receivable under the following Insurance Policies:
o Insurance (Life): Beneficiary: Estate – Irrevocable 500,000
o Insurance (Life): Beneficiary: Daughter – Irrevocable 500,000
o Insurance (Life): Beneficiary: Son – Irrevocable 500,000
o Insurance (Group): Beneficiary: Estate – Revocable 500,000
o Insurance (Property): Beneficiary: Property – Revocable 500,000
Bank Deposits:
o Bank Depo in Domestic Bank 500,000
o Bank Depo in Foreign Bank 500,000
Shares of Stock issued by Domestic Corporation 1,000,000
Shares of Stock issued by Foreign Corporation 2,500,000
Franchise:
o Franchise of a Domestic Company exercised in USA 5,000,000
o Franchise of a Foreign Company 90% exercised in PH 2,500,000
o Franchise of a Foreign Company 75% exercised in PH 2,500,000
o Franchise of a Foreign Company without situs in PH 1,000,000
House and Lot 20,000,000
Capital Real Properties 10,000,000
Paraphernal Real Properties 10,000,000

Common Properties:
House and Lot - Family Home PH 15,000,000
Vacant Lot 20,000,000
Investment in Share of Stock 10,500,000

EXPENSES
Exclusive Expenses:
o Unpaid Loans arising from Debt Instruments – Prescribed 10,000,000
o Unpaid Loans arising from Debt Instruments – Not Notarized 10,000,000
o Unpaid Loans arising from Sale of Goods/Services – Condoned 10,000,000
o Unpaid Loans arising from Sale of Goods/Services – Notarized 10,000,000
o The Accounts Receivable of the Decedent excludes the following receivables which is duly
notarized:
o Claims against Person A (Insolvent) 1 PhP 5,000,000
o Claims against Person B (Insolvent) 2
5,000,000
o Claims against Person C (Absconded) 3
5,000,000
o Claims against Person D with the following records: 6,000,000
Asset of Person D PhP 3,500,000
4
Liabilities of Person D 9,500,000

Note 1: Person A 85% uncollectible.

Note 2: Person B 75% uncollectible.
Note 3: Person C leave hurriedly and secretly, typically to avoid detection of or
arrest for an unlawful action such as theft.
Note 4: Liabilities breakdown:
Due to Government Agencies PhP 500,000
Due to Other Companies 500,000
Due to Other Creditors 500,000
o Loss due to Typhoon, a day after the decedent’s death, PhP 1,000,000.
o Loss due to Shipwreck, two months after the decedent’s death, PhP 500,000.
o Loss due to robbery, thirteen months after the decedent’s death, PhP 2,000,000.
o In relation to the Land B, it was subjected to a mortgage of PhP 5,000,000 at the time it was
inherited by the present decedent, which amount was deducted from the net estate of the father.
In addition, the present decedent paid PhP 5,000,000 of the mortgage indebtedness. The
 Assessed Value determined by the City of Manila is PhP 10,000,000 and the Zonal value as
determined by the CIR P15,000,000.

o In relation to the Land C, it was subjected to a mortgage of PhP 5,000,000 at the time it was
inherited by the present decedent, which amount was deducted from the net estate of the father.
In addition, the present decedent paid PhP 2,500,000 of the mortgage indebtedness. The
Assessed Value determined by the City of Manila is PhP 15,000,000 and the Zonal value as
determined by the CIR P10,000,000.
o Unpaid Donor’s Tax PhP 5,000,000
o Tax Assessments and Deficiencies prior to death 7,500,000
o Unpaid Income Tax for CY ended December 31, 2019 5,000,000
o Unpaid Income Tax for CY ended December 31, 2020 10,000,000
o Unpaid Income Tax on CY ended December 31, 2021 10,000,000
o Unpaid Import Tax Duties 20,000,000
o Retirement Benefits received Jan 01, 2021 PhP 10,000,000

Common Expenses:
o Losses - Common PhP 10,000,000
o Taxes - Common 5,000,000
o Donation to Social Welfare Organization 25% used Admin 5,000,000
o Donation to Social Welfare Organization 35% used Admin 5,000,000

QUESTIONS

CASE 1: Resident Citizen

1. How much is the Gross Estate attributable to:
1.1. Real Properties; _________________
1.2. Tangible Personal Properties; and _________________
1.3. Intangible Personal Properties. _________________

2. How much is the Allowable Deductions attributable to:

2.1. Claims Against the Estate; _________________
2.2. Claims Against the Insolvent Person; _________________
2.3. Losses’ _________________
2.4. Unpaid Mortgage; _________________
2.5. Taxes; _________________
2.6. Transfer for Public Purpose; _________________
2.7. Property Previously Taxed; _________________
2.8. Special Deduction; _________________
2.9. Amount under RA 4917; _________________
2.10. Family Home; and _________________
2.11. Share of the Surviving Spouse _________________

3. How much is the Net Estate. _________________

CASE 2: Non- Resident Alien
1. How much is the Gross Estate attributable to:
1.1. Real Properties; _________________
1.2. Tangible Personal Properties; and _________________
1.3. Intangible Personal Properties. _________________

2. How much is the Allowable Deductions attributable to:

2.1. Claims Against the Estate; _________________
2.2. Claims Against the Insolvent Person; _________________
2.3. Losses’ _________________
2.4. Unpaid Mortgage; _________________
2.5. Taxes; _________________
2.6. Transfer for Public Purpose; _________________
2.7. Property Previously Taxed; _________________
2.8. Special Deduction; _________________
2.9. Amount under RA 4917; _________________
2.10. Family Home; and _________________
2.11. Share of the Surviving Spouse _________________

3. How much is the Net Estate. _________________