CHAPTER 3 - ACTIVITY

PROBLEM SOLVING:

Direction: Solve the following problem. Show your solutions.

1. Ondong died on Nov. 2, 2020, leaving the following properties:

Common stocks of Monai Corporation (2,000 shares) – listed in the Philippine

Stock Exchange (highest – P40; lowest – P39)

Common stocks of Turkney Corporation (1,500 shares) – not listed in the stock

exchange.

Cost – P50 per share; book value – P45 per share

Preferred stocks of Bona Inc. (3,000 shares) – not listed in the stock exchange.

Cost – P70 per share; book value – P50 per share; par value – P50 per share

Car (cost – P600,000; book value – P350,000; market value – P400,000)

Real properties (zonal value – P120,000; assessed value – P72,000)

Required:

Compute for the gross estate

ANSWER AND SOLUTION:

Monai Corporaiton
[(P40+P39)/2 x 2,000 shares
P79,000
Turkney Corporation (P45 x
1,500 shares) 67,500
Bona Inc. (P50 x 3,000 shares)
150,000
Car 400,000
Real properties 120,000
TOTAL P816,500
ANSWER AND SOLUTION:

Monai Corporation [(P40+P39)/2 x 2,000 shares P79,000

Turkney Corporation (P45 x 1,500 shares) 67,500

Bona Inc. (P50 x 3,000 shares) 150,000

Car 400,000

Real properties 120,000

TOTAL P816,500