Saint Vincent’s College, Inc.

Dipolog City
2nd Semester 2021- 2022

COLLEGE OF BUSINESS AND ACCOUNTANCY

HIGHER EDUCATION DEPARTMENT BT 22

TERM QUIZ HURLY ALAMPAY, CPA,CTT,JD

NAME: ______________________________________ SCORE: __________________

COURSE/YEAR: ______________________________ DATE: _____________________

Problem Solving.

Use the following information for the next four items (2.5 points per item)
A decedent left the following properties: His heirs inquired you about estate tax matters.

Land in Spain (with P1M unpaid mortgage) P2,000,000; Land in Batangas, Philippines 500,000;
Franchise in Switzerland 100,000; Receivable from debtor in Philippines 70,000; Receivable
from debtor in Switzerland 100,000; Bank deposits in Switzerland 80,000; Shares of stocks of
ABS-CBN (listed), Philippines 75,000; Shares of stocks of RPH, foreign corporation 80% of the
business in the Philippines 125,000; Other personal properties 300,000; Zonal value of the land
in Batangas 750,000.
i. If the decedent is a non-resident citizen, his gross estate is ________

ii. If the decedent is a non-resident alien without reciprocity, his gross estate is ______

iii. If the decedent is a non-resident alien with reciprocity, his gross estate is ______

iv. Assuming the ABS-CBN shares are not listed, and there are 1,000 shares at the time
of death, ABC-CBN’s outstanding shares were 10,000 shares. Its retained earnings
were P2,000,000, par value per share was P50. The gross estate should show the
said shares at ________
Comprehensive Problem. 10 points

The following data were provided by the Estate of Jose Juan, a Mexican, resident of
Quezon City. Mr. Juan died intestate on September 30, 2020.

House and lot (family home) P4,000,000

Agricultural land inherited from his father who died 2.5 years before
his death P1,500,000
Other real properties P3,000,000
Car, transferred under general power of appointment P450,000
Personal properties, Mexico P450,000
Proceeds from life insurance, executor irrevocably designated P250,000
Deposits, BPI P400,000
Cash on Hand, transferred in contemplation of death P100,000
Other tangible properties P800,000
Benefits received from SSS P200,000

Obligations and charges against certain properties follow:

 Medical expense of last illness (unpaid as of the time of death
supported by bills and statements from hospital) P600,000
 Funeral expenses P500,000
 Transfer to Government P100,000
 Claims against the estate other than unpaid mortgage P250,000
 Unpaid mortgage on inherited agricultural land P130,000
 Claims against insolvent person P100,000
 Unpaid real estate tax for the 4th quarter P20,000
 Bank withdrawals, subjected to 6% withholding tax P150,000
 Benefits – RA 4917 P500,000

*The agricultural land was inherited by the present decedent. Its value at the time of inheritance
was P1,200,000. It had an unpaid mortgage of P180,000.
*Insolvent person’s total assets and liabilities were P100,000 and P400,000, respectively.

A) How much was the total gross estate? 5 points

B) How much was the vanishing deduction? 5pts
C) How much was the total ordinary deductions? 5pts
D) How much was the taxable net estate? 5pts