Mrs. Miranda made the following gifts of properties on Sept.

6, taxable year 2016;

a. Cash to eldest son, on account of marriage P48,000
b. Refrigerator to sister-in law, a birthday gift P16,000
c. Diamond ring to youngest daughter, a graduation gift P 15,000
d. Car to an illegitimate son, on account of marriage P85,000
e. Medical equipment to the UP College of Medicine P30,000
f. Wristwatch, a wedding present to a friend P 6,800
g. Furniture set, a gift to an uncle P7,500
h. Cash and land donation to the National Museum, P542,700
i. Marketable securities (Stock and bonds), costing P21,500 market value of P45,900 to the
International Rice Research Institute of the Philippines
Additional Data:
1. The refrigerator in letter b above, had an unpaid installment of P5,000 to be assumed by
the donee.
2. The car in letter d, had an installment payable of P25,000 to be assumed by donor.
3. The furniture gifted to uncle in letter g, was subject to revocation
4. The illegitimate child was instructed by the donor to contribute some of his old furniture
worth P15,000 to a social organization, for which the donee complied.

Solution:

a. 48,000
- 10,000 (dowry)
P38,000

b. 16,000
- 5,000 (unpaid installment)
P11,000

c. P15,000

d. 85,000
- 15,000 (contribution of illegitimate child)
P70,000

e. P30,000

f. P6,800

g. not included in the taxable net gift

h & i. exempt under the special law
Relative Stranger
a. Cash to eldest son P38,000 b. A birthday gift P11,000
c. A graduation gift P15,000 e. Medical equipment P30,000
d. Car to an illegitimate son _P70,000 f. A wedding present P6,800__
Total P123,000 P47,800
P47,800
Taxable net gift P170,800