Bam 208 P1 Quiz 2

PHINMA UNIVERSITY OF ILOILO August 21, 2021
BAM 208: Business Taxation

P1 Period
Quiz #2
Number of Items: 36
Duration: 9:00am to 10:00am (1 hour)
Grace Period for Submission: 10:00-10:20 am (20mins)
Direction: Answer this quiz independently and honestly.
I - True or false.
_____________1. Obligation of the surviving spouse are deductions against gross estate.
_____________2. The estate tax liability of the decedent is deductible in the computation of the net
taxable estate.
_____________3. The vanishing deduction is applicable only if the previous estate paid estate tax.
_____________4. The vanishing deduction is applicable only to properties inherited by the decedent
within 5 years before his death
_____________5. For married decedent, deductions are presumed common unless proven to be
exclusive.
_____________6. Vanishing deduction is a special deduction.
_____________7. The share of the surviving spouse is ½ of the husband’s exclusive property.
_____________8. Special deductions reduce the hereditary estate of the heir.
_____________9. Ordinary deductions do not reduce the hereditary estate of the heir.
_____________10. Non-resident decedents cannot claim the full amount of ordinary deductions.
_____________11. An unpaid funeral expense may be deducted through claim against the estate.
_____________12. Resident alien decedents can claim deductions for family home.
_____________13. Non-resident alien decedents can claim only a proportion of losses, indebtedness,
taxes, and transfer for public purpose.
_____________14. Vanishing deduction is applicable only on properties situated in the Philippines.
_____________15. Non-resident aliens cannot deduct special deductions except standard deductions.
_____________16. The standard deduction is claimable by a resident or citizen decedent without a need
to prove entitlement to the deduction.
_____________17. Non-resident decedents cannot claim standard deductions.
_____________18. Only taxes and obligations accruing after death are deductible from gross estate.
_____________19. The loss of separate properties of the decedent is not deductible against the common
properties of the spouses.
_____________20. Resident citizen decedents cannot claim deduction for transfer for public purpose for
properties located abroad
II. Multiple Choices
Use the following data for the next two (2) questions:
1. Mr. X died on November 1, 2017 leaving a gross estate of P4,500,000.
The actual funeral expense on his burial is P250,000. Of the said amount, P100.000 is unpaid.
How much is the funeral expense that can be claimed in computing the taxable net estate?
A. P100,000
B. P150,000
C. P200,000
D. P250,000
2. Assume Mr. X died on Nov. 1, 2018, how much is the funeral expense that can be claimed
in computing the taxable net estate?
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Page 1 of 5
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P1 Period
Quiz #2
A. P150,000
B. P250,000
C. P200,000
D. nil
3. Mr. X, a citizen of the Philippines and resident of Iloilo City, died testate on May 10, 2018.
Among his gross estate were properties inherited from his deceased father who died on
April 4, 2014. What percentage of the deduction would be used in computing the amount of
vanishing deduction?
A. nil
B. 20%
C. 40%
D. 60%
4. If the decedent died before 2018, the estate tax return should be filed
A. At the time of death
B. Within 30 days after death
C. Within six months after death
D. Within one (1) year after death
5. The following statements are correct regarding standard deduction under the TRAIN LAW,
except.
A. A deduction in the amount of P5,000,000 shall be allowed as an additional deduction
without need of substantiation.
B. The full amount of P5,000,000 shall be allowed as deduction for the benefit of the
decedent.
C. Standard deduction is not allowed to decedents who are non-resident aliens.
D. None of the above
6. Statement 1: Estate Tax credit refers to the taxpayer's right to deduct from the tax due the
amount of tax it has paid to a foreign country.
Statement 2: Estate Tax credit could be claimed as a deduction if such taxes pertain to
properties which are not included in the gross estate for Philippine estate tax computation.
A. Only statement 1 is correct
B. Only statement 2 is correct
C. Both statements are correct
D. Both statements are incorrect
7. If the decedent died on or after January 1, 2018, the estate tax return should be filed
A. At the time of death
B. Within 30 days after death
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P1 Period
Quiz #2
C. Within six months after death
D. Within one (1) year after death
8. Decedent died leaving a family home composed of the following; House, conjugal
property worth P800.000, and the land in which he exclusively owned valued at
P400.000. He also owns a vacation house in Baguio worth P700.000.
The deductible amount of family home:
A. 1,900,000
B. 1,200,000
C. 1,000,000
D. 800.000
9. Missys, a widow, a citizen of the Philippines residing in Canada, died on December 20,
2015 leaving the following properties:
Real property (inherited from her husband on May 3, P2,960,000
2014 valued then at P2,600,000)
Personal properties in Canada 1,300,000
Real and personal properties in the Philippines 670,000
Family home in Canada 2,500,000
Obligations:
Funeral expenses incurred in Canada 250,000
Other deductible expenses 650,000
The deduction for family home is -

A. P2.500,000
B. P1,250,000
C. P1,000,000
D. None
10. Bibo, single and a resident citizen, died with properties constituting his gross estate of
P8,000,000. Actual funeral expenses amounted to P150,000 and other charges
against the estate amounted to P210,000. The net taxable estate is (RPCPA)
A. 7,790,000
B. 7,640,000
C. 6,790,000
D. None of these
11. Amount of claim against the debtor P50,000
Total assets of the debtor 500,000
Total liabilities of the debtor 800,000
How much should be included in the gross estate of the decedent?
A. 500,000
B. 800,000
C. 300,000
D. 50,000
12. The deductible claim against insolvent person is -

A. 50,000
B. 300,000
C. 31,250
D. 18,750
13. The gross estate of Mr. Dela Cruz includes P0,000 receivables which is duly notarized
from debtor Mr. Tan. whose records show:
Total Assets P100,000
Page 3 of 5

P1 Period
Quiz #2
Indebtedness to:
Government (unpaid taxes) 40,000
Mr. Dela Cruz 80,000
Other Creditors 20,000
The deductible claims against insolvent person is

A. P29,285
B. P32,000
C. P80,000
D. None of these
14. Mr. Nama Tay died on November 20, 2018. Some of the properties he left are the following:
Market Value
Mode of Acquisition Date Acquired Date Acquired Date of Death
Land Purchase 7-3-14 500,000 350,000

Car Donation 10-2-17 800,000 980,000
Other information:
 The gross estate of the decedent amounts to P3,000,000.
 The car was mortgaged for P50,000 when it was acquired and Mr. Nama Tay paid the
same is before he died.
 The allowable deductions totaled P325,000, which includes judicial expenses of P30,000
and funeral expenses of P150,000.
The vanishing deduction is –

A. P581,000
B. P571,000
C. P648,783
D. P637,617
The following information were from the estate of a married citizen decedent who died on June
2020
Property:
Family home 12,000,000
Domestic shares inherited 6 years ago during marriage 6,000,000
Bank deposit, representing dividend earned during marriage 1,000,000
Jewelry received as gift 8 years ago during marriage 1,000,000
Expenses:
Claim against the estate 4,000,000
Funeral expenses 1,000,000
Judicial 500,000
Medical expenses 1,500,000
15. The 1/2 share of the surviving spouse is
A. 6,000,000
B. 5,000,000
C. 4,500,000
D. 3,000,000
16. The net taxable estate of the decedent is
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P1 Period
Quiz #2
A. P600,000
B. P500,000
C. P575,000
D. P475,000
“Believe in what you prayed for.”
***END OF QUIZ***
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PHINMA UNIVERSITY OF ILOILO August 21, 2021

BAM 208: Business Taxation

Direction: Answer this quiz independently and honestly.

II. Multiple Choices

1. Mr. X died on November 1, 2017 leaving a gross estate of P4,500,000.

BAM 208: Business Taxation

A. Only statement 1 is correct

B. Only statement 2 is correct

C. Both statements are correct

D. Both statements are incorrect

BAM 208: Business Taxation

The deduction for family home is -

12. The deductible claim against insolvent person is -

BAM 208: Business Taxation

The deductible claims against insolvent person is

Land Purchase 7-3-14 500,000 350,000

The vanishing deduction is –

15. The 1/2 share of the surviving spouse is

16. The net taxable estate of the decedent is

BAM 208: Business Taxation

“Believe in what you prayed for.”

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