1.

a.
b.
c.
d.

A revocable transfer with a consideration received:

Consideration received
P200,000
Fair market value of property at the time of transfer 300,000
Fair market value of property at the time of death
250,000
Amount to be included in the gross estate is:
P300,000.
P250,000.
P100,000.
P 50,000.

2.
A decedent was married at the time of death and under the system of
conjugal partnership of gains regime. Among the properties in the gross estate
were:
Land, inherited before the marriage, fair market value
Family home built by the spouses on the inherited land

a.
b.
c.
d.

P100,000.
800,000

The amount of deduction for family home allowance is

P900,000.
P500,000.
P400,000.
P450,000.

Questions 3 through 5 are based on the following information:

Mr. Digna, a resident citizen, died with properties consisting of his gross estate,
P5,000,000. Actual funeral expenses amounted to P220,000 and other expenses
and claims which are deductions from the gross estate amounted to P1,200,000.
.
a.
b.
c.
d.

The allowable deductions for funeral expenses is

P220,000.
P250,000.
P200,000.
P-0-

.
a.
b.
c.
d.

The net taxable estate is:

P3,600,000.
P3,550,000.
P3,700,000.
P3,580,000.

.
a.
b.
c.
d.

The distributable estate was diminished by:

P1,420,000.
P1,400,000.
P1,200,000.
P1,450,000.

Questions 6 & 7 are based on the following information:

.

Properties in the Philippines

P500,000.
Properties outside the Philippines
300,000
Actual funeral expenses in the Philippines
20,000
Actual funeral expenses outside the Philippines
10,000
If the decedent was a citizen or resident of the Philippines, the deductible
funeral expenses amounts to:
a.
P30,000.
b.
P40,000.
c.
P18,750.
d.
P25,000.

.
If the decedent was a non-resident alien, the deductible funeral expenses
amount to:
a.
P30,000.
b.
P40,000.
c.
P18,750.
d.
P25,000.
.
Mr. Arias died with a receivable from Mr. Bernas. Mr. Bernas has properties
worth P220,000 and obligations of P320,000. Included in the obligations are
P20,000 owed to the Government of the Republic of the Philippines for unpaid taxes
and P60,000 owed to Mr. A. The deductible claim against insolvent persons amount
to:
a.
P60,000.
b.
P41,250.
c.
P20,000.
d.
P40,000.
.
The decedent, during his lifetime, was under the conjugal partnership of
gains. Among his allowable deductions from the gross estate is vanishing deduction
and the following:
Funeral expenses P 80,000.
Judicial expenses 100,000.
Claims against conjugal properties
120,000.
Mortgage on exclusive property 40,000.
Bequest to charitable institution
5,000.
Bequest to the Philippine Government 60,000.
Medical expenses 300,000.
Amount received by heirs under R.A. 4917
60,000.
In the formula for vanishing deduction where:
Initial basis of property
------------------------------ x Deductions,
Gross Estate
The multiplier deduction is equal to:
a.
P400,000.
b.
P405,000.
c.
P 40,000.
d.
P100,000.
Questions 10 & 11 are based on the following:
A decedent died single, leaving a family home which consists of a piece of a piece of
land that he inherited 3-1/2 years ago (with value at that time of P600,000) with a
fair market value of P800,000 at the time of his death, and a house thereon which
he built at a cost of P650,000, and a fair market value at the time of his death of
P450,000. Other properties in his gross estate have a fair market value of
P550,000. Unpaid obligations at the time of his death amounted to P300,000.
.
a.
b.
c.
d.
.
a.
b.
c.
d.

The vanishing deduction is equal to:

P200,000.
P500,000.
P 40,000.
P225,000.
The total deduction for family home is:
P 450,000.
P 550,000.
P1,000,000.
P1,250,000.

.
Mr. Javier, single, a non-resident, not a citizen of the Philippines, died leaving
a gross estate in the Philippines of P1,000,000 and a gross estate outside the
Philippines of P3,000,000. His expenses and transfers were: Funeral expenses
outside the Philippines of P100,000, mortgage of property outside the Philippines of
P200,000 and in the Philippines of P50,000 and transfer to the Philippine
Government of property outside the Philippines of P100,000.

a.
b.
c.
d.

The allowable deduction from the Philippine gross estate is:

P 87,500.
P100,000.
P 37,500.
P150,000.

.
in the
a.
b.
c.
d.

Refer to the same information in no. 12, how much is the net taxable estate
Philippines?
P3,500,000.
P 912,500.
P 300,000.
P 850,000.

.
Mr. Alana inherited property on November 1, 2001, with a fair market value
and a mortgage, at that time, of P200,000 and P100,000, respectively. He married
on January 10, 2002. On March 5, 2002, he borrowed P200,000 from a bank and
mortgaged the same property. Mr. Alana died without paying any of the mortgage
indebtedness. Disregarding accrued interest on the mortgage indebtedness,
deduction against exclusive property amounts to:
a.
P100,000.
b.
P200,000.
c.
P300,000.
d.
None.
.
Mr. Benetiz died on June 30, 2003, leaving, among others, the following
charges and obligations: Real property tax for the calendar year 2003 P20,000;
On an interest-bearing promissory note (notarized): face value of the note
P10,000; accrued interest on the note at the time of death P600; and interest to
accrue on the note from the date of death to the date of maturity P400. The
deduction from the gross estate is:
a.
P20,600.
b.
P30,600.
c.
P31,000.
d.
P21,000.
Questions 16 & 17 are based on the following information:
Mr. Juanito Mendoza, a citizen and resident of the Philippines, died on June 1, 2003,
survived by his wife. The property relationship in the marriage was the conjugal
partnership of gains. He left the following properties and charges thereon:
Fair
Cost Market Value
Family home:
Residential house, constructed during the marriage P400,000
P900,000
Residential lot, TCT # 318, inherited 10 years ago
200,000
450,000
Furniture and appliances in the residential house
600,000
490,000
Receivable from insolvent friend
10,000
Cash, owned before the marriage
150,000
Other properties owned before the marriage
1,000,000
Actual funeral expenses
100,000
Judicial expenses
120,000
Unpaid mortgage
50,000
Unpaid taxes
20,000
Legacy (per will) of P50,000 cash to DSWD
50,000
Loss of household furniture and appliances on December 9, 2003
12,000

.
a.
b.
c.
d.

The deduction for family home amounts to:

P450,000;
P900,000;
P1,000,000;
P1,350,000.

.
a.
b.
c.
d.

The net taxable estate is equal to:

P1,200,000;
P 200,000;
P1,700,000;
P1,000,000.

Questions 18 through 21 are based on the following information:

Mr. Dencio Cayetano, a citizen of the Philippines, single, died a resident of the
United States, leaving the following properties:
Real property in the United States, inherited from the father one and one-half years
ago P2,000,000
Personal property in the Philippines inherited from the father
1,600,000
Family home in the United States
1,400,000
and incurred/paid the following expenses:
Actual funeral expenses paid in the United States
100,000
Other obligations contracted within the last two years
250,000
.
a.
b.
c.
d.

The taxable gross estate is:

P3,400,000;
P5,000,000;
P1,600,000;
P3,000,000.

.
a.
b.
c.
d.
.
a.
b.
c.
d.

The allowable deduction for family home is equal to:

P0P 700,000;
P1,400,000;
P1,190,400.
The deduction allowed for property previously taxed is:
P1,488,000;
P2,678,000;
P1,190,400;
P1,400,000.

.
a.
b.
c.
d.

The net taxable estate is:

P2,459,600;
P1,971,600;
P3,162,000;
P2,678,000.

The following information should be used to answer questions 22 & 23:

The decedent is a citizen and resident of the Philippines:
Gross estate P10,000,000
Claims against the estate
.
a.

3,000,000

How much is the net taxable estate if the decedent was single?
P7,000,000;

b.
c.
d.

P6,000,000;
P9,000,000;
P5,000,000;

.
How much is the net taxable estate if the decedent was married and under
the conjugal partnership of gains or absolute community of property and the
conjugal/community property was P3,900,000?
a.
P5,550,000;
b.
P6,550,000;
c.
P6,050,000;
d.
P5,505,000.
Questions 24 & 25 are based on the following information:
Mr. Alaberde, a citizen of the Philippines and a resident of the United States, under
the system of conjugal partnership of gains, died in the United States, and was
shipped to and buried in the Philippines. His estate had the following details:
Real property in the Philippines, inherited 3-1/2 years ago, when its fair market
value was P500,000
P 600,000
Real property in the U.S., used as family home
2,400,000
Tangible personal properties in the Philippines
200,000
Tangible personal properties in the United States
700,000
Funeral expenses in the United States, paid in cash from the estate
110,000
Funeral expenses in the Philippines, paid in cash from the estate 100,000
Medical expenses, incurred within 1 year prior to death (P550,000 paid, the rest still
payable)
900,000
Unpaid obligations (excluding portion of medical expenses)
600,000
Claim against an insolvent person in the Philippines 100,000
Estate tax paid in the United States
300,000
.
a.
b.
c.
d.

The gross estate is equal to:

P 800,000;
P4,000,000;
P3,900,000;
P 900,000.

.
a.
b.
c.
d.

The net taxable estate amounts to:

P695,000;
P445,000;
P195,000;
P860,000;

Questions 26 & 27 are based on the following information:

Mr. Antonio Mitras, a citizen and resident of the Philippines, died on October 5,
2003. He was married and the property relationship during the marriage was the
absolute community of property. He left the following properties, with their market
values, and obligations and charges thereon:
Agricultural land
P100,000
House and lot acquired by inheritance before the marriage and 4-1/2 years ago,
used as family home (with a fair market value of P420,000 and a mortgage of
P120,000 when acquired; P20,000 was paid by Mr. Mitras before he died)
500,000
Jewelry of Mrs. Mitras, acquired during the marriage with the exclusive money of
Mrs. Mitras
50,000
Clothes acquired during the marriage from income earned during (P60,000 for use
of Mr. Mitras, and P70,000 for use of Mrs. Mitras)
130,000
Cash on hand and in banks: income from unidentified sources
300,000
Cash in bank:

From sale at a loss of exclusive property

1,500,000
Received as gift six years ago and before the marriage (current account)
40,000
Other properties:
Owned before the marriage
90,000
Acquired during the marriage
20,000
Deductions and other information are also presented as shown on the next page:
Total funeral expenses of P300,000. Paid from the estate P 58,000
Judicial expenses
120,000
Unpaid mortgage (already on the property at the time acquired):
On agricultural land
20,000
On house and lot
100,000
Other obligations
20,000
Legacy to the Government of the Philippines from the current account
10,000
.
a.
b.
c.
d.

The amount of allowable vanishing deduction is:

P 70,135.34;
P114,758.32;
P140,270.68;
P 86,068.97.

.
a.
b.
c.
d.

The net taxable estate is:

P660,932.33;
P857,310.34;
P698,620.70;
P767,310.34.

Questions 28 through 32 are based on the following information:

Mr. Benjamin Contina, a citizen and resident of the Philippines, died on October 10,
2003, leaving the following properties, rights, obligations and charges:
Conjugal properties (including a family home of P3,000,000 and amount receivable
under R.A. 4917 of P200,000)
P6,000,000
Exclusive properties (including cash of P500,000 inherited 4-1/2 years ago)
4,000,000
Medical expenses unpaid, January 2003
600,000
Funeral expenses
350,000
Judicial expenses
500,000
Other obligations
100,000
.
a.
b.
c.
d.

The deductible medical expenses amount to:

P600,000;
P300,000;
P500,000;
P250,000.

.
a.
b.
c.
d.

The amount of deductible funeral expenses is:

P350,000;
P100,000;
P500,000;
P200,000.

.
a.
b.
c.
d.
.
a.
b.

The family home allowed should be:

P3,000,000;
P1,500,000;
P1,000,000;
P 500,000;
The amount of allowable vanishing deduction is:
P460,000;
P184,000;

c.
d.

P 92,000;
P138,000.

.
a.
b.
c.
d.

The net taxable estate is:

P3,808,000;
P5,058,000;
P1,150,000;
P2,250,000.

.
Miss Laura Praningna, a citizen and resident of Sydney, Australia, died leaving
properties and obligations in Australia and in the Philippines; Data on her properties
and obligations follow:
Properties in Australia
P3,000,000
Properties in the Philippines
1,000,000
Funeral expenses in Australia
250,000
Unpaid obligations in Australia
700,000
The net taxable estate in the Philippines is:
a.
P1,000,000;
b.
P 800,000;
c.
P 775,000;
d.
P-0.
You are given the following information about the estate of a resident citizen
decedent:
Columbia: Net estate of P100,000 and estate tax paid of P1,500;
Indonesia: Net estate of P200,000 and estate tax paid of P1,800;
Philippines: Net estate of P1,200,000.
The allowable amount of tax credit for estate tax paid in foreign countries amount
to:
a.
P2,800;
b.
P3,000;
c.
P3,300;
d.
P5,500;
.
Assume the same information given in no. 35, compute the estate tax still
due after credit for foreign estate taxes paid:
a.
P 6,000;
b.
P12,200;
c.
P 7,500;
d.
P-0 END
.
.
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D is the correct answer.

B is the correct answer.
C is the correct answer.
A is the correct answer.
A is the correct answer.
A is the correct answer.
C is the correct answer.
C is the correct answer.
A is the correct answer.
A is the correct answer.
C is the correct answer.
A is the correct answer.
B is the correct answer.
A is the correct answer.
C is the correct answer.
B is the correct answer.
B is the correct answer.
B is the correct answer.
A is the correct answer.
C is the correct answer.
A is the correct answer.
B is the correct answer.

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Letter
Letter
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A is the correct answer.

B is the correct answer.
C is the correct answer.
A is the correct answer.
A is the correct answer.
C is the correct answer.
D is the correct answer.
C is the correct answer.
C is the correct answer.
A is the correct answer.
C is the correct answer.
A is the correct answer.
B is the correct answer.