Greg and Fred are the heirs of Mr. Reyes. Luis, the administrator of the estate of Mr. Reyes, expects the net income of the estate to reach P3,000,000 for taxable year 2022. Which of the following will result the least amount of taxes to be paid by Greg, Fred and the estate of Mr. Reyes?

choices

Distribute P500,000 each to Greg and Fred.

Do not distribute the income.

Distribute P1.5 Million each to Greg and Fred.

Distribute P1 Million each to Greg and Fred.