Multiple Choice Problems Part 1

1. A single decedent died with the following data regarding his

estate:
Family home
Agricultural land
Cash and other personal properties
Total

800,000
2,500,000
1,200,000
4,500,000

Items of deductions:
Funeral expenses
400,000
Medical expenses unpaid
200,000
Judicial expenses
300,000
Claim against the estate
500,000
Standard deduction
1,000,000
Total
2,400,000
Compute the net taxable estate
a. 2300000
b. 2100000
c. 1500000
d. 1300000
2. Assuming that the estate tax in the preceding problem is
P95,000, compute the net distributable estate.
a. 3100000
b. 3005000
c. 2100000
d. 2005000
3. The following data were relates to the estate of a single resident
decedent:
Gross estate including 1.5M family home
6,000,000
Ordinary deductions
1,800,000
What is the net taxable estate?
a. 4200000
b. 3200000
c. 2200000
d. 1200000
4. Romeo died leaving his wife, Juliet, the following net conjugal
properties:
Gross estate, including 1.5M family home
Less: ordinary deductions
Total
Compute for the net taxable estate:
a. 5600000
b. 4600000

8,000,000
2,400,000
5,600,000

c. 1050000
d. 800000
5. Capt. Jeffrey Magiting, single Filipino, died in action leaving the
following net estate to his mother:
Family home
2,000,000
Other properties
8,000,000
Total properties
10,000,000
Less: funeral expenses
(300,000)
Judicial expenses
(200,000)
Paid medical expenses
(600,000)
Claims against the estate
(1,500,000)
Net estate
7,400,000
Compute for the net taxable estate.
a. 6600000
b. 5600000
c. 2800000
d. 1800000
6. Assuming that the estate tax is P555,000, compute the net
distributable estate of Capt. Magiting.
a. 8000000
b. 7445000
c. 6845000
d. 6405000
7. Mr. X, a non resident citizen bachelor, had net estate of
P1,800,000 after the following:
Funeral expenses
Judicial expenses
Claims against the estate
Losses
Compute the net taxable estate.
a. 1850000
b. 900000
c. 850000
d. 750000
8. My. Y died leaving the following properties and estate
deductions:
Separate properties of Mr. Y
Separate properties of Mrs. Y
Communal properties
Funeral expenses
Other ordinary deductions to communal
properties

250,000
150,000
600,000
200,000

1,000,000
2,400,000
2,600,000
100,000
800,000

Ordinary deductions exclusive of Mr. Y

400,000
Ordinary deductions exclusive of Mrs. Y
500,000
Family home exclusive of Mrs. Y
900,000
Compute the taxable net estate of Mr. Y.
a. 410000
b. 510000
c. 600000
d. 1600000
9. Assuming instead that Mrs. Y died, compute the her net taxable
estate.
a. 600000
b. 800000
c. 1600000
d. 1800000
10.
A decedent had a net estate of P3,750,000 after deducting
all indebtedness, taxes, losses, judicial expenses and P250,000
funeral expenses. Included in the estate was his family home
worth P1,200,000. What is the net taxable estate?
a. 4000000
b. 3000000
c. 2800000
d. 1800000

Multiple Choice Problems Part 2

1. The following pertains to the estate of a citizen decedent:
Separate properties of the decedent
Common properties of the spouses

2,400,000
5,600,000

Possible deductions
Funeral expenses
180,000
Judicial expenses
120,000
Obligations (1/4 of is separate property)
800,000
Family home common property
1,200,000
What is the taxable net estate?
a. 5300000
b. 3550000
c. 2950000
d. 2550000
2. Assuming a P100,000 estate tax, compute the net distributable
estate.
a. 4550000
b. 4450000
c. 3950000
d. 3850000

3. A single non-resident alien decedent died with the following

gross estates and deductions:
Tangible properties in PH
Intangible properties in PH
Tangible properties abroad
Total gross estate

4,500,000
500,000
5,000,000
10,000,000

Possible deductions
Funeral expenses
200,000
Judicial expenses
400,000
Medical expenses
300,000
Obligations (20% PH)
500,000
Losses
300,000
Transfer for public use (property in PH)
500,000
Compute the net taxable estate.
a. 4450000
b. 4950000
c. 4300000
d. 3800000
4. Assuming that the reciprocity rule applies, compute the net
taxable estate.
a. 3090000
b. 3460000
c. 3370000
d. 3300000
5. The following data pertains to the estate of a married non
resident alien decedent:
Philippine properties
Separate properties of the surviving spouse
Separate properties of decedent
Common properties
Total foreign properties, excluding P5,00,000
separate properties of surviving spouse
Possible deductions
Funeral expenses
Judicial expenses
Medical expense
Obligations common fund
Family home common property
What is the taxable net estate?
a. 3200000
b. 2800000

3,000,000
1,800,000
3,200,000
10,000,000

180,000
120,000
500,000
900,000
1,200,000

c. 2000000
d. 0
6. The following properties pertains to the estate of Mr. Servano, a
widower:
Cash
Investment in stocks
Car
Agricultural land
Family home

500,000
1,500,000
2,000,000
5,000,000
3,000,000

Items of deductions
Funeral expenses
350,000
Judicial expenses
200,000
Claim against the estate
2,000,000
Claim against insolvent person
500,000
Theft of cash
700,000
Compute the net taxable estate.
a. 7600000
b. 7100000
c. 5600000
d. 5100000
7. Mr. Mori, a resident Japanese citizen, had the following
Philippines
5,000,000
1,600,000

Japan
3,000,000
1,200,000

Total
8,000,000
2,800,000

Gross estate
Ordinary
deductions
Family home, PH
800,000
800,000
Standard
1,000,000
deduction
Compute the net taxable estate in the Philippines.
a. 1600000
b. 2600000
c. 1975000
d. 1625000
8. Compute the net taxable estate abroad.
a. 1800000
b. 800000
c. 1425000
d. 1775000
9. Assuming global estate tax of P289,000, compute the estate tax
payable assuming the estate of Mr. Mori paid P150,000 estate
tax abroad.
a. 167875
b. 163625

c. 139000
d. 53625
10.
A single resident citizen died leaving the following estate
and deductions:
Family home
Other properties

Philippines
China
1,800,000
7,200,00 3,000,000

Taiwan
4,000,000

Total estate

9,000,000

3,000,000

4,000,000

Funeral expense
Judicial expense
Obligations
Total

250,000
300,000
2,250,000
2,800,000

70,000
150,000
800,000
1,020,000

100,000
1,200,000
1,300,000

Total
1,800,000
14,200,00
0
16,000,00
0
320,000
550,000
4,250,000
4,250,000

Estate before
6,200,000 1,980,000 2,700,000 10,880,00
standard
0
deduction
Estate tax paid
220,000
250,000
470,000
Compute the net taxable estate in the Philippines, China and
Taiwan, respectively.
a. 1065000; 1818750; 2450000
b. 4650000; 1830000; 2520000
c. 4850000; 1870500; 2279500
d. 4750250; 1825750; 2424000
11.
Compute the estate tax due and payable in the Philippines.
a. 1065000
b. 955000
c. 599781.25
d. 595000

Multiple Choice Problems Part 3

1. A single resident alien decedent died with the following net
estate:
Net estate in the PH, before standard
deduction
Net estate abroad, before standard deduction
Net estate, world before standard deduction
Compute the estate tax.
a. 615000
b. 585000
c. 465000

2,500,000
3,500,000
6,000,000

2.

3.

4.

5.

d. 190000
In the immediately preceding problem, compute the estate tax
assuming the decedent is a non resident alien.
a. 615000
b. 585000
c. 465000
d. 190000
A single resident alien without a family home had a net estate of
P1,200,000 after allowable deduction of ELIT items totaling
P800,000. 40% of the properties of the decedent were from the
Philippines. Compute the estate tax.
a. 0
b. 10000
c. 14000
d. 71000
In the immediately preceding problem, compute the estate tax
assuming the decedent is a non resident alien.
a. 0
b. 10000
c. 14000
d. 71000
A married citizen died leaving the following net estate:

Exclusive properties of the decedent

3,000,000
Common properties of the spouse
12,000,000
Total allowable deduction for ELIT common
1,800,000
Transfer for public use - exclusive
200,000
Vanishing deductions exclusive
500,000
Medical expenses
600,000
The common properties includes a family home worth
P1,500,000. Compute the net taxable estate.
a. 6900000
b. 5900000
c. 5150000
d. 4900000
6. The heirs of the decedent bachelor want to determine their net
distributive share in the net estate. Details of the estate of the
decedent were as follows:
Gross estate
7,000,000
Total allowable deduction for ELIT
1,800,000
Transfer for public use
200,000
Vanishing deductions
500,000
Medical expenses (20% unpaid)
250,000
The total actual ELIT was P2,100,000. Compute the net
distributable estate assuming that the estate tax was P240,000.

a. 4710000
b. 4510000
c. 4410000
d. 4240000
7. A resident citizen died with various properties abroad:
Taxable estate
2,000,000
2,500,000
1,500,000
3,000,000
9,000,000

Estate tax paid

Net estate in PH
Net estate in Taiwan
240,000
Net estate in Singapore
200,000
Net estate in Indonesia
300,000
Total net estate
740,000
Compute the estate tax payable.
a. 1065000
b. 347500
c. 325000
d. 392500
8. A non resident alien died leaving a net taxable estate of
P4,000,000 in the Philippines and P6,000,000 abroad. He paid
P300,000 estate tax abroad including P70,000 attributable to
properties situated in the Philippines. Compute the estate tax
payable.
a. 915000
b. 615000
c. 355000
d. 285000
9. Mr. Masiba died leaving the following properties.
Bank deposit
Business interest
Commercial building
Family home, inclusive of P2,000,000 lot

2,100,000
3,000,000
4,000,000
3,800,000

Additional information:
1. The commercial building was purchased using donations
received by Mr. Masiba during the marriage. The same building
sustained a P400,000 fire loss shortly after Mr. Masiba died.
The lot where the family home stands was received by Mrs.
Masiba as inheritance during the marriage.
Funeral expenses and judicial expenses of P400,000 and
P200,000 was incurred by the estate, respectively.
The commercial building was mortgaged to a bank for
P1,500,000. Mr. and Mrs. Masiba paid P500,000 prior to Mr.
Masiba death. There were P100,000 accrued interest at the
death of Mr. Masiba.
Compute the net taxable estate.

a.
b.
c.
d.
10.

7100000
7000000
3850000
3750000
The following related to the estate of a single decedent:

Receivables representing proceeds of life

insurance irrevocably designated to a brother
Motor vehicles
Investment in bonds
Stock investments
Land
Funeral expenses (1/2 paid by friends)
Loss motor vehicle
Obligations (1/4 accruing after death)
Compute the net taxable estate.
a. 4150000
b. 3950000
c. 3150000
d. 3550000

1,000,000
400,000
600,000
300,000
4,000,000
300,000
400,000
800,000