Mr. Pomelo Filipino, head of the family died on March 20, CY, leaving the following properties and obligations:

House and lot in USA reported as F. Home,	P1,500,000
Other Real Properties	5,400,000
Farm lot, Indonesia	975,000
Claims against an insolvent debtor	225,000
Transfer in contemplation of death (gratuitous)	1,500,000
Transfer passing special power of appointment	75,000
Deduction claimed:
Funeral expenses	500,000
Judicial expenses	67,500
Death benefits from employer	400,000
Unpaid mortgage on the farm lot	75,000
Medical expenses (incurred within the 1 year period with receipts)	225,000
Bank Loan	500,000

The farm lot was inherited 4 years ago by the decedent before his death with a value then of P675, 000 and a mortgage indebtedness of P150,000.

1. The taxable net estate is:

2. Based on the preceding number, the taxable net estate if all properties are in Philippines is: