Reference no: EM132910948

Question 1 - On January 2, 2017, Mr. Andrews inherited a commercial building which was valued at 30,000,000 in the estate tax return of the predecessor, This is the only property that remained when Andrew died on July 7, 2020. The property was encumbered by a 12,000,000 mortgage. P6,500,000 of which was paid by Andrews before his death. The property has a zonal value of P40,000,000 and an appraisal value of P50,000,000 upon his death.

Determine the vanishing deduction in the problem

A. 8,107,500

B. 8,366,000

C. 12,161,250

D. 12,549,000

Question 2 - Compute for the estate tax.

A. 1,040,325

B. 1,283,550

C. 1,868,040

D. 1,628,040

Question 3 - An American residing in Japan died leaving net properties of P4,000,000 in the Philippines and P26,000,000 abroad. He paid 1,300,000 estate tax abroad. Compute for the estate tax payable in the Philippines.

A. 210,000

B. 236,000

C. 440,000

D. 470,000

Question 4 - Mr. Masiba died leaving the following properties:

Bank deposit 6,000,000

Business interest 12,000,000

Commercial Building 20,000,000

Family home, inclusive of 2,000,000 lot 14,000,000

Additional Information:

-The commercial building was purchased using donations received by Mr. Masiba during the marriage. The same building sustained a P1,000,000 fire loss shortly after Mr. Masiba died.

-The lot where the family home stands were received by Mrs. Masiba as inheritance during the marriage.

-The commercial building was mortgaged to a bank for P2,500,000. Mr. and Mrs. Masiba paid P500,000 prior to Mr. Masiba's death. There were P100,000 accrued interest at the death of Mr. Masiba.

-The spouses were under the absolute community of property.

Compute for the Net taxable estate.

a. 20,950,000

b. 21,950,000

c. 22,950,000

d. 23,750,000