Saint Ferdinand College

College of Accountancy
Taxation Review

Name: _Rochelle E. Manayao Score: ____________

Course and Year: BSA IV Date: _____________

Finals Drill __ - Estate Tax (Married)

INSTRUCTIONS: Write your final answer on the answer sheet provided below. STRICTLY NO
ERASURES.
1. D 6. B 11. C 16. A 21. A
2. B 7. D 12. C 17. A 22. A
3. C 8. B 13. B 18. A 23. D
4. C 9. B 14. D 19. D 24. A
5. C 10. A 15. D 20. A 25. C

Items 1-2.
J. Cruz, Filipino, married, died testate on January 10, 2018. Records show the following assets
and deductions on the date of death:
Condominium unit in Makati (family home) 40,000,000
Apartment in Hong Kong 300,000
Y Corporation shares (domestic shares), exclusive 250,000
Note receivable from insolvent debtor residing in Manila 60,000
Note receivable from insolvent debtor residing in Hong Kong 40,000

Deductions claimed:
Cost of cemetery lot 35,000
Expenses of internment 25,000
Note payable, contracted 2017, not notarized 30,000
Note payable, contracted 2016, notarized, paid on Jan. 22, 2018 100,000
Note payable, contracted 2016, notarized, paid on Jan. 4, 2018 50,000
Mortgage on condominium unit in Makati 100,000
Mortgage on apartment in Hong Kong 50,000
Legacy of Y shares to J. Cruz's brother 40,000
Legacy of Y shares to Municipality of Orani, Bataan for schoolhouse 100,000
Legacy of Y shares to a social welfare organization which uses 35% of
bequests/gifts it receives to cover administration costs 30,000

1. Determine the gross estate of J. Cruz.

a. P40,300,000
b. P40,250,000
c. P40,350,000
d. None of the above.
2. Determine the net estate of J. Cruz subject to the estate tax.
a. P40,050,000
b. P 5,175,000
c. P 5,145,000
d. None of the above.

Items 3-7
The decedent is a married man with a surviving spouse with the following data died on February
1, 2021:
Conjugal real personal properties (excluding land valued at P200,000 transferred inter vivos to a
son) P10,000,000 Conjugal personal properties (including
P800,000 bank deposit which was withdrawn and subjected to 6% final
withholding tax) 4,800,000
Exclusive family home 30,000,000
Conjugal ordinary deductions claimed (including P500,000 funeral expenses but excluding
P300,000 judicial expenses) 2,500,000

3. Using BIR From No. 1801 what amount shall be reflected in Line 34 page 2 (Gross estate) a.
P45,000,000
b. P44,800,000.
c. P44,000,000.
d. P21,000,000.
4. Using BIR From No. 1801 what amount shall be reflected in Line 35 page 2 (Ordinary
deductions)
a. P2,800,000
b. P2,500,000
c. P2,000,000
 d. P1,700,000
5. Using BIR From No. 1801 what amount shall be reflected in Line 37D page 2 (Total special
deductions)
a. P30,000,000
b. P15,000,000
c. P10,000,000
d. P1,000,000
6. Using BIR From No. 1801 what amount shall be reflected in Line 40 page 2 (Net taxable
estate)
a.P31,500,000
b. P27,500,000
c. P27,000,000
d. P21,000,000
7. Using BIR From No. 1801 what amount shall be reflected in Line 18 page 1 (Estate tax due)
a. P1,890,000
b. P1,632,000
c. P1,620,000
d. P1,260,000

Items 8-10
Tom Cruz. Filipino, married (in 1990), died on April 22, 2018, leaving the following assets and
expenses:

Assets:
Farm Pampanga P 1,800,000
House and lot Makati (Family home) 1,350,000
Investment, partnership 400,000
Personal properties 160,000
Cash in bank 200,000
Apartment, Quezon City, donated to Tom Cruz by his parents in 2011 7,000,000

Expenses:
Funeral expense 130,000
Unpaid mortgage in farm 140,000
Unpaid mortgages apartment 100,000
Unpaid income tax for 2017 24,000
Medical expenses in 2018 75,000
Support allowances given to the widow during the settlement
of the estate 30,000

8. Compute the gross estate

a. P10,910,000
b. P10,710,000
c. P 9,110,000
d. None of the above
9. Compute the total ordinary deductions
a. P499,000
b. P264,000
c. P939,000
d. None of the above
10. Compute the net estate subject to estate tax
a. P3,098,500
b. P 264,000
c. P 939,000
d. None of the above

Items 11-15
The decedent is a married man with a surviving spouse under conjugal partnership of gains with
the following data died on February 1, 2021:
Real properties received by the decedent as inheritance during the P 10,000,000
marriage (including land valued at P200,000 transferred inter vivos
by the decedent to a son).
Personal properties acquired during the marriage using common fund 6,000,000
(including car valued at P1,800,00 acquired for the exclusive use of
the surviving spouse).
Personal properties received as gift by the surviving spouse during 5,000,000
the marriage.
Exclusive family home 5,200,000
Conjugal deductions claimed (including funeral expenses amounting 2,600,000
to P200,000; judicial expenses amounting to P300,000 and medical
expenses amounting to P100,000).
Exclusive deductions claimed (including unpaid mortgage of 2,500,000
P500,000 on the personal properties received as gift by the surviving
spouse during marriage).

11. Using BIR From No. 1801 what amount shall be reflected in Line 34 page 2 (Gross estate) a.
P26,200,000
b. P21,200,000
c. P21,000,000
d. P16,000,000
12. Using BIR From No. 1801 what amount shall be reflected in Line 35 page 2 (Ordinary
deductions)
a. P5,100,000
b. P5,000,000
c. P4600,000
d. P4,000,000
13. Using BIR From No. 1801 what amount shall be reflected in Line 37D page 2 (Total special
deductions)
a. P10,200,000
b. P10,000,000
c. P7,600,000
d. P5,200,000
14. Using BIR From No. 1801 what amount shall be reflected in Line 40 page 2 (Net taxable
estate)
a. P10,900,000
b. P8,800,000
c. P 6,800,000
d. P4,800,000
15. Using BIR From No. 1801 what amount shall be reflected in Line 18 page 1 (Estate tax due)
a. P654,000
b. P528,000
c. P408,000
d. P288,000

Items 16-19
H, Filipino, married to W in 1998, died on August 13, 2018. The estate reported the following
assets and deductions:
Conjugal properties:
Fishpond. Pampanga P 2,000,000
Apartment house, Quezon City 1,000,000
Cash in bank 800,000
Family home 30,000,000

Exclusive Properties of H:
Land, inherited from father who died on August 13, 2016. Value of
land when inherited was P210,000 The land had a mortgage of
P30,000 when inherited, of which P10,000 was paid by H before he died. 400,000
Land, donated on February 14, 2014 by H’s mother who died on
November 2, 2018. Value of land when donated was P500,0000. 600,000

Exclusive Properties of W:
Farm in Leyte, acquired during marriage 3,000,000

Deductions Claimed:
Funeral expenses (actual) 250,000
Fire loss, apartment house (occurred 5 months after death) 80,000
Bad debt (unpaid receivable from an insolvent debtor) 100,000
Mortgage on inherited land 30,000
Vanishing deduction on inherited land 75,000
Vanishing deduction on donated land 90,000
Standard deduction 1,000,000

16. Determine the gross estate of H.

a. P34,900,000
b. P34,800,000
c. P35,000,000
d. None of the above.
17. What is total amount of proper deductions chargeable against the conjugal properties of the
estate?
a. P180,000
b. P200,000
c. P458,510
d. None of the above.
18. What is total amount of proper deductions chargeable against the exclusive properties of the
estate?
 a. P195,000
b. P185,000
c. P 20,000
d. None of the above.
19. What is the net taxable estate?
a. P2,581,490
b. P2,580,747
c. P2,601,341
d. None of the above.

Items 20-21
Mr. Eks died on December 1, 2021 leaving the following properties:
Farmland in Baguio, brought to marriage by wife 5,400,000
Income from farmland in Baguio 500,000
Apartment units in Quezon City, acquired during marriage 4,000,000
Rental income from apartment units in Quezon City 80,000
Rest house in Tagaytay, acquired before marriage 5,000,000
Income from rest house in Tagaytay 400,000
Car, inherited by wife during marriage 1,950,000
Jewelry, acquired during marriage for exclusive use
and using the exclusive money of the wife 300,000
House and lot inherited from his father on September 1, 2020
(fair market value when inherited, P3,000,000), used as family home 4,000,000
Unpaid mortgage on the inherited
house and lot (original mortgage, P1,200,000) 200,000 Car
received as gift from his mother in 2021 750,000
Deductible losses, indebtedness, taxes 1,500,000
20. How much is the estate tax due under Conjugal Partnership of Gains (CPG)? a.
P367,771
b. P427,771
c. P232,171
d. P127,771
21. How much is the estate tax due under Absolute Community of Property (ACP)?
a. P145,110
b. P570,510
c. P385,110
 d. P445,110

Items 22-25
A married resident decedent, under conjugal partnership of gains, left the following:
Investments P4,000,000
Vehicles 6,000,000
Exclusive family home (assessed value, P10,000,000, zonal value, 7,000,000)
Conjugal piece of land (cost, P12,000,000; fair market value, P15,000,000)
Conjugal deductible losses, indebtedness, taxes, etc. 500,000
Medical expenses (including P300,000 unpaid bill) 700,000

22. How much is the gross estate?

a. P35,000,000
b. P32,000,000
c. P29,000,000
d. None of the choices
23. How much is the deductible medical expenses?
a. P700,000
b. P500,000
c. P400,000
d. None
24. How much is the total special deductions?
a. P15,000,000
b. P10,000,000
c. P 7,000,000
d. P 5,000,000 25. How much is the net taxable estate?
a. P18,800,000
b. P14,900,000
c. P 7,250,000
d. P 6,550,000