OLARTE, CHRI STHEAC.
CHAPTER 13: True of False 1 ______1. The list of properties of the decedent existing at the point of death must be established in determining gross estate. ______2. Gross estate consists of all real properties and tangible personal properties wherever situated at the point of death. ______3. The gross estate of non-resident citizen includes tangible properties wherever situated. ______. The gross estate of non- resident alien includes onl! tangible properties situated in "hilippines. ______#. The gross estate of resident alien includes onl! real properties wherever situated. ______$. The list list of properties of of the decedent must be counted counted at the date of death. death. ______%. "roperties owned b! the decedent which are exempted b! law are initiall! included in gross estate but are removed b! wa! of deduction from gross estate. ______&. "roperties "roperties not owned b! the the decedent ma! be included included in gross estate. ______'. Taxable transfers consist of properties passed to other persons before death but are still owned b! the decedent at the point of death. ______1(. The motives motives of the donation shall be be the basis of its taxation. taxation. ______11. "roperties "roperties valued at the higher of the fair value and ac)uisition cost. ______12. *ewl! *ewl! ac)uired properties properties are valued valued at ac)uisition cost. cost. ______13. +here the law or regulations do not prescribe for fair value rules, fair value rules of generall! accepted accounting principles ma! be sought. ______1. isted stocs are valued at their par value. ______1#. *on-listed *on-listed common stocs are valued valued at their boo value. value. Chapter 13-A-Estate Tax: Gross Estate True or False 2 ______1. Transfers Transfers inter-vivos inter-vivos made before before death are are included in gross estate. estate. ______2. /ncome earned earned after death death are included in gross gross estate. ______3. /ncome earned earned before before death are included in in gross estate. ______. The pa!ment for obligations and expenses after death is added bac to the amount of gross estate. ______#. Taxable transfers are included included in gross estate. ______$. "roperties held b! the decedent as a trustee must be included in gross estate. ______%. "roperties held b! the decedent which must be transmitted to an heir in accordance with the desire of a predecessor are excluded in gross estate. ______&. The proceeds proceeds of an irrevocable irrevocable life insurance is is included in gross estate. estate.
______'. "roperties held b! the decedent as a 0duciar! heir are included in gross estate. ______1(. The proceeds of life insurance which is revocabl! designated must be included in gross estate. ______11. The proceeds of life insurance which is included in gross estate if the bene0ciar! is the estate, the executor or administrator. administrator. ______12. The separate properties of the surviving spouse are excluded in gross estate. ______13. Transfers Transfers made for ade)uate considerations considerations are excluded excluded in gross gross estate. ______1. The merger of usufruct in the owner of the naed title is a transfer excluded in gross estate. ______1#. The gross estate includes onl! the person separate properties of the decedent. ______1$. The proceeds proceeds of group group insurance is included in gross gross estate. ______1%. The proceeds proceeds of G/ polic! polic! and bene0ts bene0ts are included in in gross estate. ______1&. ene0ts from from the 45 45 are exempt exempt from estate tax. tax. ______1'. 6onations mortis causa to accredited non-pro0t institutions are exclusions in gross estate. ______2(. Transfers Transfers in contemplation of death death are included in in gross estate. ______21. /f the fair value of the propert! transferred mortis causa for an inade)uate consideration decline below the amount of the consideration at the date of death, no amount is included in gross estate. ______22. 7evocable transfers and conditional transfers are included in gross estate at the the fair fair valu value e of the the prop proper ert! t! at the the date date of thei theirr tran transf sfer er to the the transferees. ______23. "roperties passing under special power of appointment are included in gross estate. ______2. The gross gross estate is valued at the point of death. ______2#. /f a consideration is paid b! the transferee in a taxable transfer, the amount to include in gross estate shall sh all be the excess of the fair value of the propert! at the date of death over the consideration given.
Chapter 13-A-Estate Tax: Gross Estate Multiple Choices – Theor: Part 1
1. The gross estate of resident or citizen decedents do not include a. "roperties located abroad b. "roperties located in the "hilippines c. /ntangible personal propert! located abroad d. "roperties not owned 2.
Gross estate means a. "roperties, whether or not owned b! the decedent, existing at the point of death. b. "roperties owned b! the decedent at the point of death c. "resent properties in the possession of the decedent at the point of death d. 5n! of these
3.
5s a rule, all decedents are taxable on world estate, except a. non-resident alien. b. non-resident citizen. c. resident alien. d. non-residents.
.
5s a rule, the gross estate of non-resident alien decedents includes a. /ntangible personal properties located abroad b. 7eal properties located abroad c. /ntangible personal properties located in the "hilippines d. Tangible personal properties
#.
+hich reciprocit! exemption8 a. 7esident alien b. *on-resident alien c. *on-resident citizen d. 5ll of these
$.
+hich propert! is covered b! the reciprocit! exemption8 a. /ntangible personal propert! abroad b. /ntangible personal propert! in the "hilippines c. Tangible personal propert! abroad d. Tangible personal propert! in the "hilippines
%. +hich of these properties ma! be excluded in gross estate b! reason of reciprocit!8 a. 9ash c. "aintings b. 9ar d. and &. +hich is not deducted from the inventor! list of properties in arriving at the gross estate8
a. "roperties held as a trustee b. "roperties held as 0duciar! heir c. "roperties held under a general power of appointment d. "roperties held under a special power of appointment '. /f inventor! taing of properties conducted after the death of the decedent, which is deducted from the inventor! list8 a. /ncome accruing after death b. :xpenses paid after death c. /ncome accruing before death d. :xpenses paid before death 1(. +hich is not added to the inventor! list of properties in computing gross estate8 a. Transfer in contemplation of death b. 7evocable transfers c. Transfers under general power of appointment d. ;erger of the usufruct in the owner of the naed little 11. +hich is a correct statement8 a. The merger of the usufruct in the owner of the naed title is a transmission sub
1. The proceeds of life insurance designated b! the decedent to his child is included in gross estate a. if the designation is revocable. b. if the designation is irrevocable. c. without regard to the designation as d. in all circumstances. 1#. The proceeds of life insurance designated b! the decedent to his estate is included in gross estate a. if the designation is revocable. b. if the designation is irrevocable. c. without regard to the designation as revocable or irrevocable. d. in all circumstances. 1$. The proceeds of life insurance designated b! the decedent to his wife is excluded in gross estate a. if the designation is revocable. b. if the designation is irrevocable. c. without regard to the designation as revocable or irrevocable. d. under no circumstances. 1%. The proceeds of life insurance designated b! the decedent to his executor is excluded in gross estate a. if the designation is revocable. b. if the designation is irrevocable. c. without regard to the designation as revocable or irrevocable. d. under no circumstances. 1&. +hich is an inclusion in gross estate8 a. eparate properties of surviving spouse b. 9ommon properties of the spouses c. eparate properties of the heirs d. "roperties ac)uired from the group insurance 1'. +hich is not included in gross estate8 a. 7evocable transfers b. Transfers in contemplation of death c. Transfer under special power of appointment d. 5ll of these 2(.+hich is not included in the gross estate of the husband8 a. 9apital properties b. 9ommon properties
c. "araphernal properties d. 5ll o these 21.+hich is not included in the gross estate of the wife8 a. 9apital properties b. 9ommon properties c. "araphernal properties d. 5ll o these 22.+hich of the following donations in the last will and testament is excluded in gross estate of the decedent8 a. 6onation to a favorite child b. 6onation to an ex-girlfriend c. 6onation to a charitable institution d. 6onation to the government 23.+hich proceeds of insurance is included in gross estate of the decedent8 a. "roceeds of life insurance irrevocabl! designate to the decedent=s child b. "roceeds of group insurance c. "roceeds of propert! insurance d. 5ll of these 2.+hich is not an exclusion in gross estate8 a. 5ccruals from b. G/ bene0ts c. +ar damage pa!ments d. "rivate retirement bene0ts 2#. +hich of the following be)uest to social welfare or charitable institutions is subor taxable transfers, the value to include in gross estate shall be the fair value of the propert! at the point of death. Statement 2: >or taxable transfers made for an insu?cient consideration, the total fair value of the propert! at the point of dearth shall be included in gross estate. +hich is correct8 a. tatement 1 b. tatement 2
c. oth statements d. *either statement
Multiple Choice – Theor: Part 2 1. ;r. 5 devised in his will a piece of land to ;rs. . ;rs. shall pass usufructuar! right over the propert! and shall pass the same to ;r. 9 upon her death. +ho shall include the propert! in his or her gross estate upon death8 a. ;r. 5 c. ;r. 9 b. ;r. d. ;r. 5 and ;r. 9
2. ;rs. 5 appointed ;s. as 0duciar! heir over an agricultural land which ;s. shall turn over to ;r. 9 upon ;s. =s death. +hich is incorrect8 a. The land must be included in ;rs. 5=s gross estate upon her death. b. The land must be excluded in ;s. =s gross estate upon her death. c. The land must be excluded in ;r. 9=s gross estate upon his death. d. *one of these 3. ;r. 5 designated his wife as the revocable bene0ciar! of the proceeds of his life insurance +hich is incorrect8 a. The proceeds must be included in the gross estate of ;r. 5. b. The proceeds must be excluded in the gross estate of ;rs. 5 upon her death. c. The proceeds must be treated as donation sub
$. ;r. 5 made an irrevocable donation in trust in favor of ;r. 9. ;r. 9 died two !ears after receiving the donation. +hich is correct8 a. The propert! shall be included in the gross estate of ;r. 9. b. The propert! shall be included in the gross estate of ;r. 5. c. The propert! shall be excluded in the gross estate of ;r. 9. d. *one of these %. +hat is a best wa! to minimize estate tax exposure8 a. /nvest !our mone! in a corporation b. 6onate the properties to relatives before death c. nderstate !our gross estate and do not pa! estate tax d. /nvest propert! in life insurance and mae the designation of the bene0ciar! as irrevocable &. +hich of these transfer mortis causa will more liel! to be included in gross estate of the decedent8 Fair value at transfer death a. b. c. d.
" " " "
1((,((( 1#(,((( 2((,((( 3((,(((
Selling price at transfer
"1#(,((( "1#(,((( "1#(,((( "2((,(((
Fair value at
" " " "
2((,((( 3((,((( 1(,((( 2&(,(((
'. +hich is excluded in gross estate8 a. >ringe bene0ts b. 6e minimis bene0ts c. G/ bene0ts d. "hilhealth bene0ts 1(. +hich of the following properties is present at the point of death but is excluded from gross estate8 a. 7evocable transfer b. 9onditional transfer c. Transfer b! bona 0de sale d. "roceeds of group insurance 11.
+hich ma! be exempt from estate tax8 a. "roceeds of building 0re insure b. "roceeds of car insurance c. "roceeds of crop insurance d. "roceeds of life insurance
12.+hich is not included in gross estate8 a. 6ecedent interest to properties b. Taxable transfers c. "roceeds of life insurance irrevocabl! designated to the estate d. /ncome of properties of the decedent after death 13.
The decedent owns an agricultural land with the following valuesB Conal value " 2,(((,((( 5ssessed value 1,#((,((( /ndependent appraised value 3,2((,((( DEer price of a willing bu!er ,(((,(((
The agricultural land shall be included in gross estate at a. " 1,#((,((( c. " 3,2((,((( b. " 2,(((,((( d. " ,(((,((( 1. The decedent owns 2((,((( shares of aint "eter 9orporation, a listed compan!. 6ate of death oo value per share " 23.#( 9losing price " &.2( 5verage trading price " &.((
6ate of interment " 23.## " '.#( " '.$(
The 2((,((( shares shall be included in gross estate at a. " ,%((,((( c. " ',$((,((( b. " ',$(,((( d. " ','((,((( 1#.The decedent had F 2,((( in his possession at the date of his death on *ovember 2, 1(1. e was buried on *ovember 12, 2(1. The following were the exchange ratesH *ovember 2 2(1 " 2.#(H F1 *ovember 2 to *o 12, 2(1 average rate " 3.2#H F1 *ovember 12, 2(1 " 2.%#H F1 5t what amount shall the F2,((( be included in the gross estate of the decedent8 a. " &$,#(( c. " &#,((( b. " &#,#(( d. " ( Multiple-Choice – Pro!le"s: Part 1
1. ;rs. 6el! 9ado died on *ovember 1, 2(1. 5n inventor! of her properties was conducted for estate tax purposes on Ianuar! 1, 2(1#. Dn that date, she had properties with aggregate fair values of "%,(((,(((. This amount includes "3((,((( income received b! the estate since her death and is net of "$((,((( expenses used during her funeral. +hat is the amount of gross estate8 a. " %,'((,((( c. " %,(((,((( b. " %,3((,((( d. " $,(((,((( 2. ;r. Tio died leaving the following propertiesH "urchase cost >air value 9ar, registered in his name " &((,((( " ((,((( >amil! home 2,(((,((( #,(((,((( Dther properties ((,((( 3#(,((( 9ompute the gross estate. a. " 2,%#(,((( b. " 3,2((,(((
c. " #,%#(,((( d. " $,2((,(((
3. ;r. acleito had the following properties with their respective fair values in his possession at the date of his deathH 5gricultural land, held in trust " 2((,((( 9ar, registered in the name of his brother 3((,((( ;otorc!cle &(,((( 7esidential lot '((,((( Dther personal properties %(,((( 9ompute the gross estate. a. " '#(,((( b. " 1,(#(,(((
c. " 1,2#(,((( d. " 1,##(,(((
. The heirs of ;r. ;asigasig identi0ed a total " 12,(((,((( in properties which were existing at the date of his death. 5 total of " #((,((( was used during his wae up to the point of his interment. is heirs also used " ((,((( of this amount to pa! oE obligations of ;r. ;asipag. 5n investment in the estate of ;r. ;asipag also earned " #(,((( in dividends which the heirs reserved for pa!ment of his estate tax. +hat is the gross estate8 a. " 12,'((,((( b. " 12,&#(,(((
c. " 12,#((,((( d. " 12,(((,(((
#. 5 decedent died in Dctober 2(12. is properties had aggregate fair value of " 12,(((,((( at that time. is heirs failed to pa! his estate tax. /n ;arch 2(1, his heirs prepared a list of the decedent=s properties which now had a value of " 13,#((,((( which excludes a car worth " 1,#((,((( which was stolen on Ianuar! 2(1. +hat is the gross estate8 a. " ( c. " 13,#((,((( b. " 12,(((,((( d. " 1#,(((,((( $. 5 resident decedent died leaving the following propertiesH 5n orchard, held as usufructuar! " 1,2((,((( 5 motorc!cle, borrowed from a friend &(,((( 9ash, proceeds of his ban loan #((,((( 5 ranch, ac)uired for " 1,(((,((( in 1''( 2,#((,((( 9attles $((,((( ouse and lot &((,((( 9ompute the gross estate. a. " 2,((,((( b. " 3,'((,(((
c. " ,((,((( d. " #,$&(,(((
%. 5 citizen decedent died leaving the followingH "roperties, inherited from his father " 1,2((,((( "roperties, donated b! brother &((,((( 9ash, from his salar! savings ((,((( 9ash, income of properties before death 2((,((( 7eceivables, income of properties after death 1((,((( +hat is the gross estate8 a. " $((,((( b. " %((,(((
c. " 2,$((,((( d. " 2,%((,(((
&. 5 resident Iapanese decedent died with the following propertiesH 5 house and lot in Iapan an deposit, in the "hilippines 5 car in the "hilippines 5 residential lot in the 5
2,(((,((( &((,((( 1,(((,((( 1,#((,(((
9ompute the amount to be included in gross estate.
a. " ( b. " 1,&((,(((
c. " 2,(((,((( d. " #,3((,(((
'. 5 non-residential alien decedent died leaving the followingH 5 building in @orea " &,(((,((( 5 car in ongong 2,(((,((( hares of stocs in ;ala!sia ,(((,((( 9ash in the "hilippine bans &((,((( /nvestment in bonds of domestic corporations ((,((( 9ompute the gross estate. a. " ( b. " &((,(((
c. " 1,2((,((( d. " 11,2((,(((
1(. 5 @orean citizen, residing in the "hilippines, died in the "hilippinesH 5n agricultural land in @orea 5 house and lot in @orea 5 condominium unit in the "hilippines 5 business interest in the "hilippines 9ar in the "hilippines 9ash in Iapanese bans
" 12,(((,((( ,(((,((( 2,(((,((( 3,(((,((( 1,2((,((( 1,&((,(((
+hat is the amount to include in gross estate8 a. " ( c. " $,2((,((( b. " 3,2((,((( d. " 2,(((,((( 11. 5 >ilipino citizen died while residing in the 5. e had the following properties at the date of his deathH hares of domestic corporations 9ash in bans 9ar in the ouse and lot in the "hilippines
" 2,(((,((( #,(((,((( 3,(((,((( ,(((,(((
+hat is the amount to include in gross estate8 a. " ( c. " $,(((,((( b. " ,(((,((( d. " 1,(((,((( 12.5 ;exican citizen died in To!o, Iapan. e had the following propertiesH ouse and lot in ;exico ouse and lot in Iapan
" 12,(((,((( 1&,(((,(((
9ar in Iapan hares of stoc in a domestic corporation /nterest in a "hilippine-based business
2,(((,((( ,(((,((( 2,(((,(((
+hat is the amount to include in gross estate8 a. " ( c. " 2$,(((,((( b. " $,(((,((( d. " 3&,(((,((( 13./n the immediatel! preceding problem, what is the amount to include in gross estate assuming that the reciprocit! condition applies8 a. " ( c. 2$,(((,((( b. " $,(((,((( d. 3&,(((,((( 1. 5 non-resident alien decedent had the following interests at the point of deathH /nterest in a business partnership organized abroad " 3((,((( hares in a foreign corporation %#J of the business Df which is situated in the "hilippines ((,((( 9laims from resident debtors 1,2((,((( 9ompute the amount of properties considered situated in the "hilippines. a. " &((,((( c. " 2,(((,((( b. " 1,2((,((( d. " 2,((,((( 1#.;r. ;asipag died leaving a commercial land as part of his estate. The land was purchased in 2(1( at an ac)uisition price of " 11,(((,(((. 5n interested bu!er tendered a " 1#,(((,((( oEer to bu! the propert!. The land had an independent appraisal of " 1$,(((,(((, assessed value of " 12,(((,((( and a zonal value of " 1,(((,(((. +hat is the amount to be included in gross estate8 a. " 11,(((,((( c. " 1,(((,((( b. " 12,(((,((( d. " 1#,(((,((( 1$.;r. /mbestor died with a signi0cant stoc holdings as followsH • • •
1,((( Globe preferred stocs with " 1,((( par value per share (,((( an ;iguel common shares with par value of " 1(( per share &(,((( stocs of 9armen 9orporation with par value of " #( per share
oo values Globe preferred
"1,(((
": closing price at date of death "1,(((
an ;iguel common shares 9armen common shares
2#(
3((
#
-
+hat is the total amount to include in gross estate8 a. " 13,(((,((( c. " 1$,(((,((( b. " 1#,(((,((( d. " 1%,(((,((( 1%. 5 decedent died with the following propertiesH "urchase cost *ewl! purchased ord :xpedition 1,#((,((( and, mortgaged to a ban for " 1,(((,((( 3,(((,((( #(( grams pure gold &#(,((( The >ord :xpedition was refurbished b! the decedent maing it readil! saleable at " 1,&((,((( in the second maret. The land had zonal of " ,(((,((( and assessed value of " 2,#((,(((. The ango entral ng "ilipinas K"L is bu!ing gold at " 1,&(( per gram at the date of death of the decedent. 9ompute the total amount to be included in gross estate. a. " $,##(,((( c. " ,2&(,((( b. " ((,((( d. " ,((,((( 1'. 5 decedent owns 2#,((( stocs in a closel! held corporation which had the following e)uit! structure at the date of death of the decedentH 9ommon stocs K1,(((,((( outstanding sharesL " #,(((,((( 5dditional paid in capital 2,(((,((( 7etained earnings 1,(((,((( Total hareholder=s e)uit! " &,(((,((( +hat is the value of the stocs to be reported in gross estate8 a. " ( c. " 1%#,((( b. " 12#,((( d. " 2((,((( 2(.;r. 9anuto was hospitalized on 5pril &, 2(1 but died on 5pirl 12, 2(1. /t=s was buried on 5pril 21, 2(1. ;r. 9anuto had F12,((( prior to hospitalization. F2,((( was spent for his hospitalization while F1(,((( was used for his funeral. The following were the exchange rate between the "eso and the 6ollarH 5pril &,
5pril 12,
5pril 21,
"eso-6ollar exchange rate
2(1
2(1
2(1
" 2.3(
" 2.#(
" 2.#
9ompute the amount to be included in gross estate. a. " ,2#,((( c. " #,2%(,((( b. " ,2#(,((( d. " #,$'#,((( Multiple-Choice – Pro!le"s: Part 2 1. ;s. ;a. @atie "ero died banrupt. he had the following properties and obligations at the date of her deathH 9ash 5gricultural land >amil! home 6ebts and obligations 9ompute the gross estate. a. K" 2,&((,(((L b. " (
"
2((,((( 3,(((,((( 2,(((,((( &,(((,(((
c. #,(((,((( d. #,2((,(((
2. ;rs. 9andida died. /n his last will and testament, he indicated the followingH ouse and lot, to his adopted son and onl! heir " #,(((,((( and, to a public school 1,(((,((( 9ash, to 5-9* >oundation #((,((( The legac! to 5-9* >oundation is intended to anta! ata 1$3, a non-pro0t social welfare program of 5-9* >oundation. 9ompute the gross estate. a. " #,(((,((( b. " #,#((,(((
c. " $,(((,((( d. " $,#((,(((
3. The heirs of a decedent received the following insurance proceeds upon the decedent=s deathH ource 5mount /nsurance 5 - designated to wife as revocable bene0ciar! " ((,((( /nsurance - designated to son as irrevocable bene0ciar! #((,((( /nsurance 9 - group insurance proceeds 2((,((( /nsurance 6 M designated to executor as irrevocable bene0ciar! ((,((( 9ompute the insurance proceeds to be included in gross estate. a. " 2((,((( c. " &((,((( b. " ((,((( d. " '((,(((
. /n his will, 5nton transferred a life usufruct in favor of 9endong and thereafter to entong, who is the owner of the naed title. 9endong eventuall! died resulting in the transfer of the propert! to entong. entong also died few !ears later. +hich is correct8 a. The propert! shall not be included in the gross estate of 5nton. b. The propert! shall be included in the gross estate 9endong. c. The propert! shall not be included in the gross estate of entong. d. The propert! shall be included in the gross estate of 5nton and entong. #. 6 devised in his will an agricultural land with life usufruct to : and naed title to >. 5ll parties eventuall! died. The land had a value of " 1,#((,((( on 6=s death, " 1,(((,((( on :=s death and " 2,(((,((( on >=s death. +hich is correct8 a. The land shall be valued at " 1,(((,((( in the gross estate of 6. b. The land shall be valued at " 1,#((,((( in the gross estate of :. c. The land shall be valued at " 2,(((,((( in the gross estate of >. d. *one of these $. ;r. A devised in his will a commercial land to be given to C, his favorite grandchild. ince C is a minor, ;r. A designated ;rs. N as the 0duciar! heir who is entrusted the obligation to transfer the propert! to C upon her death. +hich is correct8 a. The transfer of the propert! from ;r. A shall be sub
+hich must be included in the gross estate of ;r. 9aba!o8 a. "roceeds of life insurance taen b! ;r. 9aba!o with his eldest son as irrevocable bene0ciar! b. "roceeds from ;r. 9aba!o=s car insurance c. "roceeds of the life insurance over ;r. 9aba!o=s life taen b! ";;9 with ";;9 as the bene0ciar!. d. *one of these '. ;rs. ;alou "het is the bene0ciar! of a revocable donation consisting of two commercial buildings. ;rs. "het himself is also designated b! his father as a 0duciar! heir over a commercial lot which is to be transferred to his !ounger sister, ;abaet. ;rs. "het died in action as a militar! servicewoman. +hich is correct8 a. The buildings and the commercial lots shall be included in the gross estate of ;rs. ;alou "het. b. The two buildings shall be included in the gross estate of ;rs. ;alou "het. c. Dnl! the commercial lot shall be included in the gross estate of ;rs. ;alou "het. d. The buildings and the commercial lot shall be excluded in the gross estate of ;rs. ;alou "het. 1(.;r. 6ino Iones died leaving the following propertiesH 9ar, purchased using G/ retirement bene0ts " #((,((( /nterest in a
" $,(((,((( 1,#((,((( 2,(((,((( 3,(((,(((
Total
" 12,#((,(((
9ompute the gross estate of ;rs. Tara!. a. " ,(((,((( c. " $,#((,((( b. " $,(((,((( d. " 11,(((,((( 12.Dn eptember 3(, 2(1, ;r. "ogi *alang died in an accident. >ew hours later, his wife, ;aganda *alang, died of heart-attac upon learning of ;r. "ogi=s death. The spouses had a son who is the onl! heir to their properties. The properties of the spouses on eptember 3( wereH eparate properties of "ogi eparate properties of ;aganda 9ommon properties of the spouses
" 3,(((,((( #,(((,((( &,(((,(((
9ompute ;atias= gross estate. a. " 3,(((,((( c. " 11,(((,((( b. " %,(((,((( d. " 1$,(((,((( 13.
/n the immediatel! preceding problem, assume further that ;rs. ;aganda *alang had the followingH hare in the net distributive estate of ;r. *alang hare in the net con
" 2,#((,((( 3,%((,(((
9ompute ;rs. *alang=s gross estate. a. " #,(((,((( c. " &,%((,((( b. " %,#((,((( d. " 11,2((,((( 1.
;r. +ill! made the following transfers mortis causa during his lifetimeH Transfer to Iaimee M 5 revocable transfer involving residential lot valued at " 2,(((,((( at the date of transfer. +ill! failed to revoe the same until his death. Transfer to ;r. i M 5 conditional transfer of business interest worth " 1(,(((,((( at the date of transfer. ;r. i to meet the conditions before ;r. +ill!=s death. Transfer to ;ar M 5 conditional transfer of car valued at " 1,#((,(((. ;ar ful0lled the condition before ;r. +ill!=s death. •
•
•
The properties had the following fair values at the death of ;r. +ill!, 7esidential lot
" 3,(((,(((
usiness interest 9ar Total
',(((,((( 1,2((,((( " 13,2((,(((
9ompute the amount to be included in ;r. +ill!=s gross estate. a. " 3,(((,((( c. " 12,(((,((( b. " ',(((,((( d. " 13,2((,((( 1#.
;r. Nausa, a Iapanese citizen residing in To!o, Iapan, died with the following properties in the "hilippinesH " 2,(((,((( car M given to resident >ilipino friend as revocable donationB ;r. Nausa waived his right to revoe the donation on his last visit in the "hilippines. " ,(((,((( share investment on listed 0rms M held b! a "hilippine stoc broer " #,(((,((( interest in a partnership operating in the "hilippines
•
•
•
1$.
5 decedent invested " 2,(((,((( in the stocs of 59 9orporation b! purchasing stocs from an investor who sold the shares at " 12# per share. 5t the date of the decedent=s death, the stocs were selling " 13 per share. +hat is the value to include in gross estate8 a. " 2,(((,((( c. " 13,(((,((( b. " 2,1,((( d. " 2$&,(((,(((
1%. ;r. ;ando 7ucot owns 2(J of the 1,(((,((( outstanding shares of 6:> 9orporation, closel! held corporation. 6:> 9orporation had a boo value per share of "12( on its 0nancial statement nearest to the date of death of ;r. 7ucot. 6:> 9orporation had several assets which exceeds their fair value b! an aggregate amount of " 1,(((,(((. 5t what amount shall this investment be reOected in the gross of ;r. 7ucot8 a. " 2$,&((,((( c. 12(,(((,((( b. " #3,$((,((( d. 2$&,(((,((( 1&.
/n 2(((, ;r. 9abalde died leaving a will which directed all real estate owned b! him not to be sold or disposed of for a period of 1( !ears after his death and ordered that the propert! be given to ;rs. Nare after the 1(-!ears period. /n 2(((, the estate had a fair maret value of " 2,(((,(((. /n 2(12, the fair maret value of said estate increased to " #,(((,((( and the ureau of /nternal 7evenue K/7L assessed thereon estate tax based on " #,(((,(((. /s the /7 assessment valid8
a. Nes. The assessment of the 9/7 is correct because on matters of assessment he has the authorit! to determine the value to be assessedB b. *o. The assessment of the 9/7 is incorrect. The assessment should have been based on the fair maret value at the same time of death which is " 2,(((,(((B c. Nes. The assessment of the 9/7 is correct because it was based on the value at the time of assessmentB d. *o. The assessment of the 9/7 is incorrect because estate tax is not sub
