Assessment: Email

9/29/21, 11:01 AM Assessment
Assessment
This is a 100-point exam. Try to work this out within one and a half(1.5) hours.
Multiple Choice Questions (Nos 1- 30)
Choose the letter of the BEST Answer
Problem Solving (Nos. 31-44 )
Input your final answers in Google Forms. For numbers, use the following format:
10
100
1,000
10,000
100,000
1,000,000
10,000,000
100,000,000
1,000,000,000
Enumeration (Nos. 45-47)
Provide what is asked.
Essay (Nos. 48-50)
Keep your answers concise but complete. Answers which are unnecessarily lengthy shall
incur deductions.
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Name *
Marjorie Joyce J Baritua
1. Statement 1- Donation Mortis Causa is a kind of donation which takes 1 point

effect at the time of death of the donor. It is subject to estate tax.
Statement 2- Donation Inter Vivos is donation which takes effect at the
time of death of both the donor and the donee. It is subject to donor’s tax.
*
only the first statement is correct
Both statements are incorrect
Both statements are correct
Only the second statement is correct
2. Statement 1- The subject matter of a transfer tax is the right of the 1 point
transferor to gratuitously transfer property or rights which takes effect at
the date of death of the transferor. Statement 2- Lineal Consanguinity is
that which subsists between persons of whom one is descended in a direct
line from the other. It may be descending or ascending. *
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3. Statement 1- Collateral consanguinity is that which subsists between 1 point

persons who have the same ancestors, but who do not descend (or
ascend) one from the other. Statement 2- Will is an act whereby a person is
permitted, with the formalities prescribed by law, to control to a certain
degree the disposition of the estate to take effect during his lifetime. *
4. Statement 1- A holographic will is a written will which need not be be 1 point

entirely written, dated and signed by the hand of the testator himself.
Statement 2- The gross estate of a Citizen Decedent is composed of Real,
Tangible Personal and Intangible personal property inside Philippines. *
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5. Statement 1- The gross estate of a Non-Resident Alien is composed of 1 point

Real and Tangible personal properties situated inside the Philippines and
Intangible personal property with situs in the Philippines unless excluded
on the basis of reciprocity. Statement 2- A real property is valued as the
higher between the Fair Market Value determined by the Commissioner
and the Fair Market Value as shown in the schedule of values fixed by the
provincial and city assessor. Fair Market value pertains to FMV at the time
of death. *
6. Statement 1- Estate tax is a tax imposed on the privilege that a person is 1 point
given in controlling to a certain extent, the disposition of his property to
take effect upon death. Statement 2- The rights to the succession are
transmitted from the moment the heirs receive their share in the
inheritance. *

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7. Statement 1- Testate succession arises when there is transmission of the 1 point
properties in the absence of a will or if there is a will, the same is void or

lost its validity or nobody succeeds in the will. Statement 2- A codicil is a
supplement or addition to a will, made before the execution of a will and
annexed to be taken as a part thereof, by which any disposition made in
the original will is explained, added to or altered. *
8. Statement 1- Bank deposits in a US Bank- Philippine Branch owned by 1 point
non-resident alien decedent situs within the Philippines are always

included in the gross estate. Statement 2- Listed shares of stocks shall be
valued at book value per share of the issuing corporation. *
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9. Statement 1- Regardless of the classification of the decedent, the 1 point
maximum amount of deductible standard deduction for the gross estate

after the effectivity of TRAIN Law is P5,000,000. Statement 2- In
computing for vanishing deduction, the value to be taken is the lesser
amount of the value of the property at the date of the previous transfer or
the value of the property at the date of death of the decedent. *
10. Statement 1- Loss of portion of the estate incurred a month before the 1 point
death of the decedent is deductible. Statement 2- Losses on the portion of
exclusive capital of surviving spouse incurred during settlement of the
estate is deductible. *
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11. Statement 1- Deductions from gross estate are highly disfavored in law; 1 point
he who claims deductions must be able to justify his claim or right.
Statement 2- Receipts or invoices or other evidence to show that the
expenses was really incurred, if applicable, must duly support deductions
against the gross estate. *
For Nos 12 and 13 Among the properties included in the gross estate of the
decedent at the time of death is a three-story commercial building with a fair
market value of P12,000,000. During the settlement of the estate and before
the last day of paying the estate tax, the said property is destroyed by fire.
The fair market value at the time of the incident was P13,000,000.
12. Statement 1- The amount that should be included as part of the gross 1 point
estate is zero. Statement 2- The amount of deductible loss from the gross
estate will be zero considering that the property is no longer included in
the gross estate due to the loss by fire. *

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13. Statement 1- Assume that the property was insured for P9,000,000 and 1 point
the amount recovered from the insurance company was P8,000,000. The
amount of deductible loss is P4,000,000. Statement 2- Assume that 70%
of the property is destroyed by fire and the property is not insured. The
deductible loss will be P8,400,000. *
14. Statement 1- Vanishing deduction is being allowed to lessen the impact 1 point
of successive taxation of the same property within a very short period due
to the death of the decedent-transferor. Statement 2- Even property
previously taxed situated outside the Philippines of a non- resident alien
decedent, for estate tax purposes, can be allowed vanishing deduction. *
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15. The gross estate of a decedent who was married at the time of death 1 point
will be composed of: *
None of the above
His capital property and the common property
His capital property, the wife’s paraphernal property and the common property
His capital property
Common property
16. A resident citizen had family home in the Philippines. He worked abroad 1 point
and was temporarily absent from his family home when he died. Which of
the following statements is correct? *
The decedent would not be allowed family home deduction because he was a
nonresident citizen when he died.
The decedent would not be allowed family home deduction because he was abroad
when he died.
None of the above.
The decedent would be allowed family home because all decedents were allowed
family home deduction.
The decedent would be allowed family home deduction because actual occupancy of
the family home was not interrupted and abandoned because of his temporary
absence.
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17. It pertains to the amount of all the bequests, legacies, devises or 1 point
transfers to or for the use of the Government of the Republic of the
Philippines or any political subdivision thereof, for exclusively public
purposes *
Inheritance
None of the above.
Transfers for public use
Vanishing deduction
Property previously taxed
18. Which of the following exempt transmissions will still require inclusion of 1 point
the property of the gross estate? *
Merger of the usufruct in the owner of the naked title.
None of the above.
Legacy to a charitable institution whose administrative expenses did not exceed 30%
of the legacy.
Death benefits under the GSIS
Transfer from a first heir to the second heir designated by the decedent.
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19. Which of the following is a transfer in contemplation of death? * 1 point
Mhalapit Nha has been fighting for his life since he was diagnosed to have a terminal
illness. Accepting his fate, he sought the assistance of Atty. Lho Yer, and made his
will.
Neither A nor B.
None of the above.
Both A and B.
Mr. Matibay celebrated his 101st birthday. Feeling that death is not far, he transferred
all his properties to Pedro and Juan.
20. Who shall file the estate tax return? * 1 point
Executor, Administrator, or any of the legal heirs
Creditors of the decedent
Personal secretary of the decedent
Debtors of the decedent
None of the above
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21. Under which of the following situations an estate tax return is required 1 point
to be filed under the TRAIN law? *
Transfers which are subject to estate tax
The estate consists of registered or registrable properties for which a clearance from
the BIR is required as a condition precedent for the transfer of ownership
Both A and B
Neither A nor B
None of the above
22. Which of the following is not included in the gross estate? * 1 point
Revocable transfer where the condition is not sufficient
Revocable transfer where the power of revocation was not exercised
Transfer passing under the general power of appointment
Transfer for sufficient consideration
None of the above
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23. Decedent’s interest: I. Refers to the extent of equity or ownership 1 point

participation of the decedent on any property physically existing and
present in the gross estate, whether or not his possession, control or
dominion II. Refers to the value of any interest, having value or capable of
being valued or transferred, in property owned or possessed by the
decedent at the time of his death. *
I only
II only
Both I and II
Neither I nor II
None of the above
24. Which of the following rules on “situs” of property of a decedent is 1 point

correct? I. As a general rule, the situs of real property is the place or
country where it is situated II. As a general rule, the situs of tangible
personal property is the place or country where such is actually located at
the time of the decedent’s death. III. The rule that situs of intangible
personal property is the domicile or residence of the owner does not apply
when the property has a result elsewhere. IV. The test of situs of property
of a non-resident alien decedent is not important at all because only the
transmissions of property located in the Philippines are subject to estate
tax. *
I only
I and II only Request edit access
I, II, and III only

I, II, and III only
I, II, III and IV
None of the above
25. One of the following is not an intangible personal property not situated 1 point
in the Philippines. *
Shares, obligations, or bonds issued by any corporation or Sociedad anonima

organized or constituted in the Philippines in accordance with its law
Shares, obligations or bonds issued by any foreign corporation 85% of the business of
which is located in the Philippines
Shares, obligations or bonds issued by any foreign corporation if such shares,

obligations or bonds have acquired business situs in the Philippines.
Shares, obligations or bonds issued by a non-resident foreign corporation
None of the above.
26. The following statements pertain to relatives by consanguinity, except; 1 point

I. Consanguinity is the relation subsisting among all the different persons
descending from the same stock or common ancestor II. Portion of the
blood of the common ancestor flows through the veins of all his
descendants, and though mixed with the blood flowing from many other
families, yet it constitutes the kindred or alliance by blood between any
two of the individuals III. This relation is also knowns as relation by blood IV.
Relation by consanguinity of of two kinds: lineal and collateral *
I and II only
I, III, and IV only
I, II, and IV only
All of the above Request edit access
None of the above

o e o t e abo e
27. Estate * 1 point
Is the sum of all the property of a deceased individual which are available for
disposition to his heirs, successors or beneficiaries, represented by an executor or
administrator as the case may be.
Is a person designated in the last will and testament to carry out the provisions of the
decedent’s will
Is a person who performs a fiduciary duty such as taking care of the decedent’s
estate prior to final disposition to the heir(s)
Is a person appointed by the court and performs the same duty, in lieu of an executor,
if the latter refused to accept the appointment, failed to qualify under the law or the
last will and testament did not appoint one
None of the above
28. Statement 1- Vanishing Deduction is always a deduction from the 1 point

exclusive properties of the decedent. Statement 2- A property is subject to
vanishing deduction if it has been acquired thru exchange with a property
inherited within 5 years prior to the death of the present decedent. *
Only the first statement is correct
None of the above. Request edit access
29. Three of the four items of deduction below are required to be included 1 point
in the gross estate. Which one is not? *
Judicial expenses
Claims against insolvent persons
Benefits received under RA 4917
The undiminished value of the property mortgaged
30. Proceeds of life insurance not payable to estate, executor or 1 point

administrator shall be excluded in the gross estate if the beneficiary
appointed in the policy is: *
Revocable
Revocable or irrevocable
irrevocable
the executor
31. A property, acquired for Php 1,000,000 was transferred in 3 points

contemplation of death for a consideration of Php 100,00. Fair market
value at the time transfer is Php 1,500,000, while at the time of death is
Php 1,200,000. Determine the value of the property of the gross estate. *
1,100,000 Request edit access
32. On January 1, 2017, Pedro extended a loan worth Php 1,000,000 to 3 points
Juan due on January 1, 2019. The latter executed a promissory note with
an annual interest of 10%. Pedro died on June 30, 2018. Determine the
value of the property in the gross estate. *
1,150,000
33
Pedro owns various shares of stocks from different companies during his lifetime. At the time of his
death, the following details were provided to you by his administrator.
100,000 shares of Frozen Company’s ordinary shares, not traded
Outstanding shares – 800,000 shares; P10 par
Retained Earnings – Php 3,000,000
100,000 shares of Divergent Company’s ordinary shares, listed shares
Outstanding shares – 1,000,000 shares; P10 par
Mean value of the shares in the stock exchange – P15
100,000 shares of Lenovo Company’s ordinary shares, listed shares
Outstanding shares – 1,000,000 shares; P10 par
Mean value of the shares in the stock exchange – P12
33. Determine the gross estate of Pedro. * 3 points
4,075,000
34 and 35 Request edit access

Gabi is a known enemy to dogs in her neighborhood. One day, Titan, a dog owned by Gabi’s neighbor
Sasha ran after Gabi, left with no recourse, sprinted as fast as she could in order to outrun Titan but
failed to notice the cliff in front of her Gabi fell to her death
failed to notice the cliff in front of her. Gabi fell to her death.
The following are the properties in Gabi’s gross estate with their fair market values
House and lot, family home in Quezon City 1,500,000

Bank deposit in the foreign branch of a domestic bank 500,000
Bank deposit in Makati branch of a foreign bank 300,000
Shares of stock issued by a domestic corporation (Certificate kept in Canada) 1,000,000
Franchise exercised in Manila 800,000

Receivable, debtor from Mindanao 200,000
34. If Gabi was a non-resident alien and there is reciprocity, determine 3 points
value of the property excluded from her gross estate. *
3,800,000
35. In No. 34, if Gabi was a non-resident alien and there is no reciprocity, 3 points
determine the value of the gross estate. *
3,800,000
36
Transfers in contemplation of death
Consideration received FMV upon transfer FMV upon death
Land 1,500,000 1,500,000 2,000,000
Shares of stock 100,000 50,000 150,000
Vintage car 50,000 80,000 100,000
Painting 250,000 400,000 500,000
36. The correct gross estate should be: * 3 points
150,000
37
Ms. Balo, spouse of the decedent who died in a bus accident (harurot Transport), received Php 2,500,.00
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broken down as follows:
900,000 From Habambuhay Life Insurance Company. A life insurance taken out by the decedent
900,000 From Habambuhay Life Insurance Company. A life insurance taken out by the decedent
designating his wife as revocable beneficiary.
1,200,000 From Walang Hangganan Life Insurance Company taken out by the decedent designating his
wife as irrevocable beneficiary.
400,000 From Harurot Transport Company (owner of the bus involved in the accident) where settlement
was made outside court proceedings.
37. Determine how much should be included in the gross estate of the 3 points
decedent. *
1,300,000
38. One of the items in the gross estate of a decedent is a claim against an 3 points
insolvent person amounts to Php 500,00. The insolvent debtor can still
pay Php 100,000 out of the Php 500,000. How much will be included in
the gross estate? *
500,000
39. In No. 38, how much will be deducted from the gross estate? * 3 points
400,000
Nos. 40- 41
Gabi is working in a factory manufacturing military equipment. Her employer is Sasha Company. One day,
Gabi failed to follow safety protocols and was rather playful in handling an equipment. Consequently,
Gabi accidentally shot herself to death.
Gabi died leaving a gross estate of Php 12,800,000 including a land inherited from his uncle Reiner 3 ½
years before Reiner’s death and a car donated to him seven (7) years before his death. The following data
pertain to the two properties:
Unpaid Mortgage FMV upon Receipt FMV upon death
Land 100,000 1,800,000 1,250,000

Car 50,000 300,000 400,000
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The decedent was able to pay ½ of the unpaid mortgage on the land before his death.
Other deductions claimed are as follows:
Expenses, losses, indebtedness, taxes (excluding the unpaid mortgages above but including actual
funeral expenses of Php 300,000 and medical expenses of Php 600,000) 1,200,000
Transfer to the Government, included above 300,000
Death Benefit from Sasha Company under RA 497, excluded above 200,000
Family Home, included above 2,000,000
40. Determine the vanishing deductions * 5 points
465,000
41. In No. 40, determine the net taxable estate. * 3 points
4,735,000
42
A non-resident alien decedent left the following assets
Domestic shares 1,000,000
Foreign shares 3,000,000
Tangible personal property 6,000,000
Losses, unpaid indebtedness and taxes 1,200,000
The country where the decedent is a citizen does not import transfer tax on transmission of intangibles
of Filipinos not residing therein.
42. Determine the next taxable estate in the Philippines. * 3 points
5,280,000
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43 and 44
Pedro Cruz died intestate on September 30, 2018. He was survived by his wife and his two children, He
left the following properties:
Land (1,000 sqm) inherited from his father 15 months before Pedro’s death. Fair market value per tax
declaration at the time of Pedro’s death, Php 20,000,000; Zonal value at the time of Pedro’s death, Php
30,000 per sqm House and Lot (Family Home) acquired during the marriage, FMV, Php 50,000,000, Other
tangible persona properties (mode of acquisition unknown), FMV 22,000,000
The following were considered as deductions from the gross estate:
Actual funeral expenses 480,000
Judicial expenses 1,000,000
Other claims against the conjugal properties 5,000,000
Unpaid taxes 1,200,000
Claims against insolvent persons 500,000
Medical expenses 1,200,000
The estate of the decedent’s father paid the estate tax on the land at the fair market value of Php 25,000.
During the marriage, Pedro mortgaged the inherited land for Php 7,000,000 for the benefit of the family.
He paid Php 3,500,000 before he died.
43. Determine the vanishing deductions. * 4 points
1,500,300
44. In No. 43, determine the estate tax due * 2 points
63,000,000
45. What are those properties not Physically in the estate but are still 7 points
subject to payment of estate tax? * Request edit access
T f i t l ti fd th T f i
Transfer in contemplation of death,Transfer wi
46. Requisites for deductibility of Indebtedness. * 4 points
A) Arising exclusively from: Acts of God such a
47. Requisites for deductibility of Claims against Insolvent Person (CAIP) * 3 points
(a)Incapacity of debtor to pay his obligation sh
48. Mr. Felix dela Cruz, a bachelor resident citizen, suffered from a heart 4 points
attack while on a business trip to the USA. He died intestate on June 15,
2018 in New York City, leaving behind real properties situated in New York;
his family home in Valle Verde, Pasig City; and office condominium in
Makati Cityl; shares of stocks in San Miguel Corporation; cash in bank and
personal belongings. The decedent is heavily insured with Insular Life. He
had no known debts at the time of his death. As the sole heir and
appointed Administrator, how would you determine the gross estate of
the decedent? Explain. *
Because Mr. de la Cruz was a Filipino citizen, I would determine his gross estate by taking
into account all real property, wherever it may be located, as well as all personal property,
tangible, intangible, or mixed, wherever it may be located, up to the extent of Mr. de la Cruz's
interest at the time of his death. Mr. de la Cruz's protection as a Filipino citizen applies to all
of his property, wherever it may be, at the moment of his death, which is when the transfer
takes place.
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49. In no. 48, what deductions may be claimed by the estate and when and 4 points
where shall the return be filed and estate tax paid? Explain. *
where shall the return be filed and estate tax paid? Explain.
The Estate Tax Return (BIR Form 1801) shall be filed within one (1) year from the decedent's
death.
50
While driving his car to Baguio City last month, So Gwon (Resident Citizen), together with his wife, Ha-
Mun Yeong (Resident Citizen), and only son, So Mun (Resident Citizen), met an accident that caused the
instantaneous death of So Mun. The following day, Ha-Mun Yeong also died in a hospital. The spouses
and their son had the following assets and liabilities at the time of death.
Ha- Mun Yeong So- Mun
Exclusive Conjugal
Cash 10,000,000 1,200,000
Cars 500,000
Land 2,000,000 5,000,000 2,000,000
Residential 4,000,000
Mortgage Payable 2,500,000
Funeral Expenses 300,000
Is the estate of So Mun liable to estate tax? Explain. * 4 points
Yes, because So Mun died and all of his all properties will be subjected to estate tax. His
properties can be also passed to his heirs if there is any.
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9/29/21, 11:01 AM Assessment

Multiple Choice Questions (Nos 1- 30)

Choose the letter of the BEST Answer

Problem Solving (Nos. 31-44 )

Enumeration (Nos. 45-47)

Provide what is asked.

Essay (Nos. 48-50)

[email protected] Switch account

Marjorie Joyce J Baritua

1. Statement 1- Donation Mortis Causa is a kind of donation which takes 1 point

only the first statement is correct

Both statements are incorrect

Both statements are correct

Only the second statement is correct

Both statements are incorrect

Only the second statement is correct

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only the first statement is correct

3. Statement 1- Collateral consanguinity is that which subsists between 1 point

Only the second statement is correct

Both statements are incorrect

only the first statement is correct

Both statements are correct

4. Statement 1- A holographic will is a written will which need not be be 1 point

Both statements are correct

only the first statement is correct

Only the second statement is correct

Both statements are incorrect

Request edit access

5. Statement 1- The gross estate of a Non-Resident Alien is composed of 1 point

Both statements are incorrect

Only the second statement is correct

only the first statement is correct

Both statements are correct

Only the second statement is correct

Both statements are correct

Both statements are incorrect

only the first statement is correct

7. Statement 1- Testate succession arises when there is transmission of the 1 point

properties in the absence of a will or if there is a will, the same is void or

Both statements are correct

only the first statement is correct

Only the second statement is correct

Both statements are incorrect

8. Statement 1- Bank deposits in a US Bank- Philippine Branch owned by 1 point

non-resident alien decedent situs within the Philippines are always

Both statements are incorrect

Only the second statement is correct

only the first statement is correct

Both statements are correct

Request edit access

9. Statement 1- Regardless of the classification of the decedent, the 1 point

maximum amount of deductible standard deduction for the gross estate

Both statements are correct

only the first statement is correct

Only the second statement is correct

Both statements are incorrect

Both statements are correct

only the first statement is correct