Please provide a correct answer to be rated.

3. Exercise: The decedent was married at the time of death. He was survived by his wife and children. Indicate proper classification with a check mark.

FMV

EXCL-CPOG

CONJ-CPOG

EXCL-ACOP

COMM-ACOP

Cash owned by the decedent before the marriage

P5,000,000

Real property inherited by the decedent during the marriage

6,000,000

Personal property received by the wife as gift before the marriage

400,000

Property acquired by decedent with cash owned before the marriage

600,000

Personal effects of the decedent purchased with the exclusive money of the wife

500,000

Jewelry purchased with cash of the surviving spouse earned before marriage

1,000,000

Property unidentified when and by whom acquired

1,200,000

Cash representing income received during the marriage from exclusive property

2,000,000

Property acquired before marriage by the decedent who has legitimate descendants by a former marriage

3,000,000

4. Exercise: A decedent died leaving the following properties. Check the appropriate box if included in the gross estate.

Resident decedent

NRA-No Reciprocity

NRA-With Reciprocity

House and lot, USA

Condominium unit, Philippines

Furniture and appliances, Philippines

Car, USA

Bonds, Philippines

Common shares of stock not traded in the local stock exchange, Philippine Corporation

Preferred shares of stock, foreign corporation, 85% of the business in the Philippines

Proceeds of life insurance, Philippines

4. Exercise

a. Determine whether the following proceeds of life insurance shall be included in the gross estate

1) Proceeds from life insurance, third person is irrevocably designated as beneficiary

2) Proceeds from life insurance, third person is revocably designated as beneficiary

3) Proceeds of life insurance, the beneficiary's designation is not clear

4) Proceeds of life insurance, administrator of the estate is irrevocably designated as beneficiary

5) Proceeds of life insurance, executor of the estate is revocably designated as beneficiary

6) Benefits received from SSS, third person is irrevocably designated as beneficiary

7) Benefits from GSIS, third person is revocably designated as beneficiary

Exercise: Escolastica died with a claim against Juanico. Juanico has properties worth P250,000 and obligations of P350,000. Included in the obligations of Juanico are P50,000 unpaid taxes owed to the Government of the Philippines and P90,000 payable to Ms. Escolastica.

The deductible claim against insolvent debtors is P_____________________

f. Exercise on vanishing deduction

a. Decedent was a citizen of the Philippines who was single at the time of death. Compute the vanishing deduction based on the following information that were made available:

Properties inherited two-and-a-half years before death:

Located outside the Philippines P3,000,000

Located in the Philippines

FMV, when inherited 6,500,000

FMV, time of death 7,000,000

Unpaid mortgage on the property when inherited 1,500,000

Unpaid mortgage on the property at the time of death 1,000,000

Property acquired through own labor 2,000,000

Losses, indebtedness, taxes, etc. (excluding the unpaid mortgage of P1,000,000) 800,000

Transfer for public use (included in property acquired through own labor) 970,000

Medical expenses 800,000

3. Exercise: Decedent died January 1, 2020. Determine whether or not notice of death, estate tax return or statement certified by a CPA need to be filed (Y/N)

Notice of death

Estate tax return

Statement certified by CPA

Case 1 - Gross estate is P16,000,000; Deductions, P11,000,000

2 - Gross estate is P4,000,000; Deductions, P6,000,000

3 - Gross estate is P2,000,000, Deductions, P600,000 (NRA decedent)

4- Gross estate is P15,00,000 comprising of car, land and shares of stock; Deductions, P10,000,000

5 - Gross estate is P5,000,000; Deductions are P1,200,000 (NRA decedent)

6 - Gross estate is P5,500,000; Deductions are P1,000,000 (NRA decedent)

7. Cases

a. The resident decedent is a married man with a surviving spouse with the following data died on January 15, 2018:

Conjugal real properties P 6,000,000

Conjugal family house 1,000,000

Exclusive family lot 400,000

Other exclusive properties 4,500,000

Conjugal ordinary deductions (including P200,000 funeral expenses and

P300,000 judicial expenses) 1,500,000

Exclusive ordinary deductions 500,000

Medical expenses 600,000

How much is the taxable net estate and the estate tax due and payable?