Mr. Pobre is in need of money to start a small business. However, he has no property to secure a loan from a bank so he sought the help of his good friend Mr. Rich, who then obtained a loan from Banco de Oro amounting to 1,000,000 secured by a real property worth 2,000,000 to accommodate the request of Mr. Pobre. If subsequent to securing the loan and delivering to Mr. Pobre the proceeds, Mr. Rich died, how much gross estate should be reported?

a.1,000,000

b.Nil

c.2,000,000

d.3,000,000