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TEST BANK-ESTATE TAXATION A COMPUTATION OF GROSS ESTATE MULTIPLE CHOICE: 1. WHICH OF THE FOLLOWING IS NOT AN ELEMENT OF TAXATION? A. B. C. D.

DECEDENT ESTATE HEIR ADMINISTRATOR

2. INHERITANCE DOES NOT INCLUDEA) B) C) D) PROPERTY PUBLIC OFFICE RIGHTS NOT EXTINGUISHED BVY DEATH OBLIGATIONS NOT EXTINGUISHED BY DEATH

3. ESTATE TAX IS A) A PROPERTY TAX BECAUSE IT IS IMPOSED ON THE PROPERTY TRANSMITTED BY THE DECEDENT TO HIS HEIRS B) AN INDIRECT TAX BECAUSE THE BURDEN OF PAYING THE TAX IS SHIFTED ON THE EXECUTOR OR ANY OF THE HEIRS OF THE DECEDENT C) AN EXCISE TAX BEC AUSE IT IS IMPOSED ON THE PRIVILEGE EXERCISED BY THE EXECUTOR TO TRANSFER OWNERSHIP OVER THE ESTATE D)A POLL TAX BECAUSE IT IS ALSO IMPOSED ON THE RESIDENTS OF THE PHILIPPINES WHETHER FILIPINO CITI ENS OR NOT !. WHICH OF THE FOLLOWING IS NOT A DISTINCTION BETWEEN ESTATE TAX AND DONOR"S TAX? A) B) C) D) THE TAX IMPOSED IS AN EXCISE TAX EXTENSION FOR PAYMENT EFFECTIVITY OF THE TRANSFER OF PROPERTY THE EXEMPTION GRANTED IN THE TAX TABLE

#. STATEMENT 1$ THE ESTATE TAX ACCRUES AT THE MOMENT OF DEATH OF THE DECEDENT STATEMENT 2$ IN ESTATE TAXATION% THE TAX PAYER IS THE DECEDENT

WHICH OF THE ABOVE STATEMENTS IS CORRECT? A) B) C) D) STATEMENT 1 ONLY STATEMENT 2 ONLY BOTH STATEMENTS NEITHER STATEMENTS

&. IN 2''2% ( CRU GAVE A LOAN OF P1#'%''' TO SEXY% HIS SECRETARY. IN 2''#% AS AN ACT OF GENEROSITY% ( CRU CONDONED THE DEBT OF SEXY IN HIS LAST WILL AND TESTAMENT. ( CRU DIED I(N 2''). THE CONDONATION OF THE DEBT OF SEXY IS A) A DONATION INTER VIVOS SUB(ECT TO DONOR"S TAX B) A PAYMENT OR COMPENSATION FOR THE SERVICES RENDERED C) A DEDUCTION FROM THE GROSS ESTATE OF ( CRU D) A DONATION MORTIS CAUSA SUB(ECT TO ESTATE TAX *. THE FOLLOWING ARE THE MOTIVES OF A TAXPAYER THAT PRECLUDE THE TRANSFER IN CONTEMPLATION OF DEATH% EXCEPT ONE A) TO RELIEVE THE TAXPAYER OF THE BURDEN OF MANAGEMENT B) TO SAVE INCOME AND PROPERTY TAXES C) TO AVOID PAYMENT OF ESTATE TAX D) TO MAKE DEPENDENTS FINANCIALLY INDEPENDENT ). IN DEFAULT OF TESTAMENTARY HEIRS% THE LAW DETERMINES WHO ARE TO SUCCEED TO THE INHERITANCE OF THE DECEASED. WHICH OF THE FOLLOWING RANKS FIRST IN THE ORDER OF SUCCESSION? A) B) C) D) LEGITIMATE CHILDREN SURVIVING SPOUSE LEGITIMATE PARENTS ILLEGITIMATE CHILDREN

+. H AND W ARE MARRIED. THEY HAVE LEGITIMATE CHILDREN A AND B. H DIED% SURVIVED BY W% A AND B. HOS ESTATE OF P12%'''%''' SHOULD BE DIVIDED AS FOLLOWS$ W A) P3M B) 3 M A P!.#M 3M B P!.#M 3M FREE PORTION NONE 3M

C) NONE D) 2.2#M

&M !.#M

&M !.#M

NONE 2.2#M

1'. BASED ON THE FOLLOWING DATA % HOW MUCH IS THE VALUE OF THE DECEDENT"S INTEREST IF HE DIED MARCH 31% 2'')? CASH IN BANK% (OINT ACCOUNT OF THE DECEDENTS AND HIS WIFE INTEREST ON THE BANK DEPOSIT DIVIDENDS FROM A DOMESTIC CORPORATION$ DATE OF DECLARATION-FEB #% 2'') DATE OF RECORD-APRIL 1#% 2'') DATE OF PAYMEN T-MAY 1#% 2'') SHARE IN THE 2''* PROFIT OF PARTNERSHIO DISTRIBUTED TO PARTNERS ON APRIL 1# WINNINGS IN LOTTO ,BET% MARCH 3'- APRIL% 2'') DRAW) A) B) C) D) 3)3%*#' 13)%''' 1!#%''' 3))%2#' 2#!%''' +%''' &'%'''

+%''' #''%'''

11. FOR ESTATE TAX PURPOSES% THE ESTATE OF THE DECEDENT SHALL BE VALUED AT THE TIME A) B) C) D) 12. OF THE PREPARATION OF THE ESTATER TAX RETURN THE ESTATE TAX IS PAID OF THE DEATH OF THE DECEDENT THE ESTATE IS DISTRIBUTED TO THE HEIRS MAMO DIED LEAVING THE FOLLOWING PROPERTIES$

STOCKS OF CRU CORPORATION ,2%''' SHARES-LISTED IN THE PHISEX ,HIGHEST-P!'- LOWEST-P3+) COMMON STOCKS OF HEMO CORPORATION ,1%#'' SHARES)-NOT LISTED IN THE STOCK EXCHANGE. COST-P#'.SHAREBOOK VALUE-P!#.SHARE CAR-,COST-P&''%'''- BOOK VALUE-P3#'%'''- MARKET VALUE-P!''%''') REAL PROPERTIES , ONAL VALUE-P12'%'''- ASSESSED VALUE-P*2%''') THE GROSS ESTATE OF MAMO IS A) &1)%#'' B) )&*%#''

C) &2!%''' D) &&&%#'' 13. ONE OF THE FOLLOWING IS SUB(ECT TO ESTATE TAX ON PROPERTIES SITUATED WITHIN THE PHILIPPINES ONLY A) B) C) D) RESIDENT CITI EN RESIDENT ALIEN NON RESIDENT CITI EN NON RESIDENT ALIEN

NUMBERS 14 THROUGH 16 ARE BASED ON THE FOLLOWING INFORMATION: DINA MATHAY% FILIPINA% DIED IN THE U.S. WITH THE FOLLOWING PROPERTIES$ CONDO UNIT IN NEW YORK CITY SHARES OF STOCK IN A FOREIGN CORPORATION INTEREST IN A PARTNERSHIP% DOMESTIC CAR IN CEBU% DONATED INTER VIVOS # YEARS AGO TO HER SON P2%'''%''' &''%''' !*#%''' #''%'''

1!. WHICH PROPERTY SHOULD BE INCLUDED IN THE GROSS ESTATE? A) B) C) D) ALL THE ABOVE PROPERTIES ONLY THE PROPERTIES LOCATED IN THE PHILIPPINES ALL THE ABOVE PROPERTIES EXCEPT THE CAR THE PROPERTIES LOCATED IN THE PHILIPPINES EXCEPT THE INTANGIBLES

1#. IF THE DECEDENT WAS A NON-RESIDENT ALIEN ,WITH RECIPROCITY)% HOW MUCH IS THE GROSS ESTATE? A) B) C) D) P3%*2#%''' +*#%''' #''%''' NONE

1&. IF THE DECEDENT WAS A NRA , NO RECIPROCITY) % HOW MUCH IS THE GROSS ESTATE? A) B) C) D) 3%*2#%''' +*#%''' #''%''' !*#%'''

1*. WHICH OF THE FOLLOWING IS AN INTANGIBLE PERSONAL PROPERTY WITHIN? A) B) C) D) FRANCHISE EXERCISED IN THE U.S. SHARES OR RIGHTS IN THE DOMESTIC BUSINESS PARTNERSHIP BONDS ISSUED BY AN AMERICAN CORPORATION STOCKS ISSUED BY A FOREIGN CORPORATION NWITH BUSINESS SITUS IN THE PHILIPPINES

1). AN EXAMPLE OF INTANGIBLE PERSONAL PROPERTY WITHOUT IS A) DOMESTIC SHARES OF STOCK B) FOREIGN SHARES% )#/ OF THE BUSINESS OF THE CORPORATION IS IN THE PHILIPPINES C) FOREIGN SHARES WITH BUSINESS SITUS IN THE PHILIPPINES D) FOREIGN SHARES% CERTIFICATE OF STOCK ARE KEPT IN MAKATI 1+. ONE OF THE FOLLOWING DONATIONS IS NOT INCLUDED AS APRT OF GROSS ESTATE A) B) C) D) REVOCABLE TRANSFERS TRANSFERS WITH RESERVATION OF CERTAIN RIGHTS TRANSFERS UNDER SPECIAL POWER OF APPOINTMENT,SPA) TRANSFERS IN CONTEMPLATION OF DEATH

2'. WHICH OF THE FOLLOWING TRANSFERS IS INCLUDED IN THE GROSS ESTATE? A) B) C) D) TRANSFER INTER VIVOS TRANSFER UNDER GENERAL POWER OF APPOINTMENT,GPA) TRANSFER UNDER SPECIAL POWER OF APPOINTMENT,SPA) TRANSFER FOR AN ADE0UATE AND FULL CONSIDERATION

21. DECEDENT RIC HAS THE FOLLOWING DATA$ VALUE OF THE PROPERTY AT THE TIME OF SALE VALUE OF CONSIDERATION WHEN SOLD VALUE OF PROPERTY AT TIME OF DEATH THE AMOUNT INCLUDIBLE IN THE GROSS ESTATE IS A) B) C) D) 3''%''' #''%''' 2''%''' 1%#''%''' P1%2''%''' 1%'''%''' 1%#''%'''

22. WHEN ALBINO WAS INFORMED BY HIS PHYSICIAN THAT HE WAS ABOUT TO DIE OF CANCER% HE SOLD HIS PROPERTIES$ 1 MV-DATE OF SALE SP MV-DATE OF DEATH LAND 2%#''%''' 1%#''%''' 2%*''%''' (EWELRIES #''%''' 3''%''' 3''%''' SHARES OF STOCKS 2''%''' 22'%''' 2#'%''' TRANSFER UNDER LTD POWER OF APPOINTMENT 1%'''%''' &''%''' )''%''' FROM AMONG THE DATA GIVEN% HOW MUCH SHOULD BE INCLUDED IN THE GROSS ESTATE OF ALBINO UPON HIS DEATH? A) B) C) D) 1%2''%''' 1%23'%''' 1%!3'%''' 1%!''%'''

23. ON THE BELIEF THAT HE WAS ABOUT TO DIE OF A LIVER CANCER% BONGBONG SOLD TO BENGBENG A PROPERTY VALUED AT P1%1''%''' FOR THE SAME AMOUNT. SIX MONTHS LATER% BONGBONG DIED OF A CAR ACCIDENT. AT THE TIME% THE PROPERTY HAD ALREADY A VALUE OF P1%3''%'''. FOR PHILIPPINE ESTATE TAX PURPOSES% THE AMOUNT INCLUDIBLE IN THE GROSS ESTATE OF BONGBPNG ISA) 1%1''%''' B) 1%3''%''' C) 2''%''' D) ERO 2!. AMOUNTS RECEIVED BY THE ESTATE OF THE DECEASED% HIS EXECUTOR OR ADMINISTRATOR AS AN INSURANCE UNDER POLICY TAKEN BY THE DECEDENT UPON HIS OWN LIFE ISA) EXCLUDED FROM THE GROSS ESTATE B) PART OF THE GROSS ESTATE WHETHER THE BENEFICIARY IS REVOCABLE OR IRREVOCABLE C) PART OF THE GROSS ESTATE IF THE BENEFICIARY IS REVOCABLE D) PART OF THE GROSS ESTATE IF THE BENEFICIARY IS IRREVOCABLE

2#. CASE1-DESIGNATION OF THE BENEFICIARY IS REVOCABLE CASE2-DESIGNATION OF THE BENEFICIARY IS IRREVOCABLE CASE 3-POLICY IS SILENT AS TO WHETHER THE DESIGNATION IS REVOCABLE OR IRREVOCABLE IN WHICH OF THE ABOVE CASES WILL THE PROCEEDS BE EXEMPT FROM ESTATE TAX% ASSUMING THAT THE BENEFICIARY OF THE LIFE INSURANCE PROCEEDS IS NEITHER THE ESTATE% THE EXECUTOR NOR THE ADMINISTRATOR OF THE ESTATE? A) B) C) D) CASE 1 ONLY CASE 1 AND 3 CASE 2 ONLY ALL OF THE ABOVE CASES

2&. PROCEEDS OF LIFE INSURANCE NOT PAYABLE TO THE ESTATE% EXECUTOR OR ADMINISTRATOR SHALL BE EXCLUDED IN THE GROSS ESTATE IF THE BENEFICIARY APPOINTED IN THE POLICY IS A) B) C) D) REVOCABLE REVOCABLE OR IRREVOCABLE IRREVOCABLE THE EXECUTOR 2*. PROCEEDS OF LIFE INSURANCE INCLUDIBLE IN THE GROSS ESTATE A) INSURANCE PROCEEDS FROM SSS OR GSIS B) AMOUNT RECEIVABLE BY ANY BENEFICIARY IRREVOCABLY DESIGNATED IN THE POLICY BY THE INSUFRED C) AMOUNT RECEIVABLE BY ANY BENEFICIARY REVOCABLY DESIGNATED IN THE INSURANCE POLICY D) PROCEEDS OF A GROUP INSURANCE TAKEN OUT BY A COMPANY FOR ITS EMPLOYEES 2).WHICH OF THE FOLLOWING PROCEEDS OF LIFE INSURANCE POLICIES IS EXEMPT FROM ESTATE TAX? A)LIFE INSURANCE POLICY ON THE LIFE OF KRISTINE% APPOINTING HER SISTER AS THE IRREVOCABLE BENEFICIARY B)LIFE INSURANCE POLICY ON THE LIFE OF KRISTINE% APPOINTING HER BROTHER AS THE REVOCABLE BENEFICIARY C)LIFE INSURANCE POLICY ON THE LIFE OF KRISTINE% APPOINTING HER EXECUTOR AS THE IRREVOCABLE BENEFICIARY

D)LIFE INSURANCE POLICY ON THE LIFE OF KRISTINE% APPOINTING HER CHILDREN AS THE BENEFICIARY. THE POLICY IS SILENT AS TO WHETHER THE APPOINTMENT IS REVOCABLE OR IRREVOCABLE 2+.THE FOLLOWING ARE TRANSACTIONS AND AC0UISITIONS EXEMPT FROM TRANSFER TAX% EXCEPT A) TRANSMISSION FROM THE FIRST HEIR OR DONEE IFO ANOTHER BENEFICIARY IN ACCORDANCE WITH THE DESIRE OF THE PREDECESSOR B) TRANSMISSION OR DELIVERY OF THE INHERITANCE OR LEGACY BY THE FIDUCIARY HEIR OR LEGATEE TO THE FIDEICOMMISSARY C) THE MERGER OF USUFRUCT IN THE OWNER OF THE NAKED TITLE D) THE BE0UESTS% DEVISEES% LEGACIES OR TRANSFER TO SOCIAL WELFARE% CULTURAL AND CHARITABLE INSTITUTION 3'. A DEVISED IN HIS WILL A PIECE OF LAND- NAKED TITLE TO B AND USUFRUCT TO C FOR AS LONG AS C LIVES% THEREAFTER TO B. THE TRANSMISSION FROM A TO B AND C IS SUB(ECT TO ESTATE TAX BUT THE MERGER OF THE USUFRUCT AND THE NAKED TITLE TO B UPON THE DEATH OF C IS EXEMPT. X DEVISED IN HIS WILL REAL PROPERTY TO HIS BROTHER Y WHO IS ENTRUSTED WITH THE OBLIGATION TO PRESERVE AND TRANSMIT THE PROPERTY TO % A SON OF Y% WHEN BECOMES OF AGE. THE TRANSMISSION OF FROM Y TO HIS SON IS SUB(ECT TO TAX. A) B) C) D) 1ST STATEMENT IS CORRECT- 2ND STATEMENT IS WRONG BOTH STATEMENTS ARE NOT CORRECT BOTH STATEMENTS ARE CORRECT 1ST STATEMENT IS WRONG- 2ND STATEMENT IS CORRECT

31.ONE OF THE FOLLOWING IS INCLUDED IN THE GROSS ESTATE A) B) C) D) BENEFITS RECEIVED FROM GSIS BENEFITS RECEIVED FROM U.S. VETERANS ADMINISTRATION BENEFITS RECEIVED FROM DAMAGES DURING WW2 BENEFITS RECEIVED FROM A TAX-EXEMPT EMPLOYER AS A CONSE0UENCE OF DEATH OF THE EMPLOYEE

32.WHICH OF THE FOLLOWING DISTINGUISHES CON(UGAL PROPERTY FROM COMMUNITY PROPERTY? A) PROPERTIES INHERITED DURING MARRIAGE B) THOSE AC0UIRED THRU OCCUPATION DURING MARRIAGE C) FRUITS OF EXCLUSIVE PROPERTY

D) INCOME EARNED BY EACH SPOUSE DURING MARRIAGE 33.ONE OF THE FOLLOWING IS A CON(UGAL PROPERTY OF THE SPOUSES A) THAT WHICH IS BROUGHT TO THE MARRIAGE AS HIS OR HER OWN B) THAT WHICH EACH AC0UIRES DURING THE MARRIAGE BY INHERITANCE C) THE FRUITS OF AN EXCLUSIVE PROPERTY D) THAT WHICH IS PURCHASED WITH THE EXCLUSIVE PROPERTY OF THE WIFE 3!.WHICH OF THE FOLLOWING IS NOT A PART OF THE GROSS ESTATE?$ A) B) C) D) CON(UGAL PROPERTY COMMUNITY PROPERTY EXCLUSIVE PROPERTY OF THE DECEDENT EXCLUSIVE PROPERTY OF THE SURVIVING SPOUSE

3#.ONE OF THE FOLLOWING IS NOT A COMMUNITY PROPERTY OF THE SPOUSES A) B) C) D) PROPERTY INHERITED BY THE HUSBAND BEFORE MARRIAGE WINNINGS IN GAMBLING FRUITS OF PROPERTY INHERITED DURING THE MARRIAGE FRUITS OF PROPERTY INHERITED BEFORE THE MARRIAGE

3&.WHEN A PERSON DIES AND DURING THE MARRIAGE THE PROPERTY RELATIONSHIP BETWEEN THE HUSBAND AND WIFE WAS THAT OF CON(UGAL PARTNERSHIP OF GAINS% THE GROSS ESTATE OF THE DECEDENT WOULD INCLUDE A) B) C) D) HIS EXCLUSIVE PROPERTIES ONLY HIS EXCLUSIVE PROPERTIES AND 2 OF THE CON(UGAL PROPERTIES ALL THE PROPERTIES OF HUSBAND AND WIFE HIS EXCLUSIVE PROPERTIES AND ALL CON(UGAL PROPERTIES

3*.A)SHARE OF THE DECEDENT IN THE COMMUNITY PROPERTY B)SHARE OF THE SURVIVING SPOUSE IN THE COMMUNITY PPROPERTY C)EXCLUSIVE PROPERTY OF THE DECEDENT D)EXCLUSIVE PROPERTY OF THE SURVIVIBG SPOUSE WHICH OF THE ABOVE PROPERTIES ARE INCLUDED IN THE GROSS ESTATE OF THE DECEDENT? A) A ND B B) A%B% AND C

C) A ND C D) ALL OF THE ABOVE PROPERTIES 3).PROPERTIES AC0UIRED BY GRATUITOUS TITLE BEFORE THE MARRIAGE ARE GENERALLY CLASSIFIED AS A) COMMUNITY PROPERTIES UNDER ABSOLUTE COMMUNITY OF PROPERTY REGIME B) CON(UGAL PROPERTIES UNDER CON(UGAL PARTNERSHIP OF GAINS NUMBERS 39 THROUGH 42 ARE BASED ON THE FOLLOWING INFORMATION: ALDO DIED LEAVING THE FOLLOWING PROPERTIES$ A.REAL PROPERTY IN BAGUIO CITY% BROUGHT INTO MARRIAGE B.INCOME OF REAL PROPERTY IN BAGUIO C.REAL PROPERTY IN CEBU CITY% BROUGHT INTO MARRIAGE BY WIFE D.INCOME OF REAL PROPERTY IN CEBU E.HOUSE IN PILI% CAMARINES SUR% AC0UIRED BY ALDO DURING MARRIAGE F.INCOME OF HOUSE IN PILI G.REAL PROPERTY IN ILOILO CITY% EARNED BY WIFE DURING MARRIAGE H. INCOME OF REAL PROPERTY IN ILOILO CITY I.TANGIBLE PERSONAL PROPERTIES IN MANILA% INHERITED BY ALDO DURING MARRIAGE (.INCOME OF PROPERTIES IN MANILA K.INTANGIBLE PERSONAL PROPERTIES IN SINGAPORE% INHERITED BY WIFE DURING MARRIAGE L.INCOME OF INTANGIBLES IN SINGAPORE M.TANGIBLE PERSONAL PROPERTY IN DAGUPAN CITY% INHERITED BY ALDO BEFORE MARRIAGE N.INCOME OF PROPERTY IN DAGUPAN O.INTANGIBLE PERSONAL PROPERTY IN CANADA% INHERITED BY WIFE BEFORE MARRIAGE P.INCOME OF PERSONAL PROPERTY IN CANADA 3''%''' &'%''' 2!'%''' 2#%''' 3*#%''' #'%''' 22#%''' )'%''' #''%''' 1*#%''' !3'%''' )#%''' 2'%''' 1'%''' 3#'%''' )#%'''

3+. UNDER THE CON(UGAL PARTNERSHIP OF GAINS% THE TOTAL CON(UGAL PROPERTIES OF THE SPOUSES IS A)1%1*'%''' B)1%)2'%'''

C)1%++'%''' D)2%!+#%''' !'%UNDER THE CON(UGAL PARTNERSHIP OF GAINS% THE GROSS ESTATE OF ALDO IS A) B) C) D) 1%1*'%''' 2%!+#%''' 1%++'%''' 1%)2'%'''

!1.UNDER ABSOLUTE COMMUNITY OF PROPERTY REGIME% THE TOTAL COMMUNITY PROPERTY OF THE SPOUSES IS A) B) C) D) 1%)2'%''' 1%++'%''' 2%!+#%''' 1%1*'%''' !2.UNDER ABSOLUTE COMMUNITY OF PROPERTY REGIME% THE GROSS ESTATE OF ALDO IS A) B) C) D) 1%1*'%''' 2%!+#%''' 1%++'%''' 1%)2'%'''

PEPE MARRIED PILAR ON (ANUARY 2'% 1++# WITHOUT ANY PRIOR AGREEMENT IN WRITING AS TO THE SYSTEM OF PROPERTY RELATIONSHIP THAT WILL GOVERN THEIR PROPERTIES WHEN THEY ARE ALREADY MARRIED. PEPE BROUGHT INTO THE MARRIAGE AN OLD SPANISH HOUSE IN VIGAN% ILOCOS SUR WORTH P2%'''%''' WHILE PILAR BROUGHT WITH HER A 2''-HECTARE PINEAPPLE PLANTATION IN BUKIDNON WHCH SHE AC0UIRED WHILE SHE WAS STILL SINGLE. AS A CONSE0UENCE OF HER MARRIAGE% SHE RECEIVED AS GIFT FROM HER PARENTS ANOTHER 2'' HECTARE BANANA PLANTATION IN CAGAYAN DE ORO CITY ON (ANUARY 31% 1++#. TWELVE ,12) YEARS THEREAFTER% SHE DIED OF A CAR ACCIDENT. THE (OINT ACCOUNT DEPOSIT OF THE SPOUSES WITH METROBANK WAS P#%'''%'''. SHE WAS INSURED WITH AN INSURANCE COMPANY FOR P2%#''%''' WITH PEPE AS THE APPOINTED IRREVOCABLE BENEFICIARY.

FOR NUMBERS 43 TO 47, CLASSIFY THE PROPERTIES IDENTIFIED ABOVE BY CHOOSING YOUR ANSWER FROM THE OPTIONS BELOW$ A. B. C. D. EXCLUSIVE PROPERTY OF PEPE EXCLUSIVE PROPERTY OF PILAR CON(UGAL PROPERTY OF PEPE AND PILAR COMMUNITY PROPERTY OF PEPE AND PILAR

!3. THE OLD SPANISH HOUSE IN ILOCOS SUR !!. THE BANANA PLANTATION IN CAGAYAN DE ORO CITY !#. THE INCOME OF THE BANANA PLANTATION !&. THE DEPOSIT WITH METROBANK !* THE PROCEEDS OF THE INSURANCE POLICY IS A) B) C) D) EXCLUDED FROM GROSS ESTATE INCLUDED IN THE GROSS ESTATE DEDUCTIBLE FROM GROSS ESTATE NONE OF THE ABOVE

!). AN EXAMPLE OF A FUNERAL EXPENSE WHICH IS NOT DEDUCTIBLE A) COST OF COFFIN ASSUMED BY A FAMILY FRIEND B) FUNERAL SERVICES PAID OUT OF DECEDENT"S ESTATE C) MOURNING CLOTHING OF DECEASED"S UNMARRIED MINOR CHILDREN AND SURVIVING SPOUSE D) COST OF TOMBSTONE !+. STATEMENT 1$ THE AMOUNT OF FUNERAL EXPENSES WITHIN THE P2''%''' THRESHOLD% WHICH ARE STILL PAYABLE SHALL BE ALLOWED AS A DEDUCTION FROM THE GROSS ESTATE STATEMENT 2$ THE UNPAID PORTION OF THE ACTUAL FUNERAL EXPENSES INCURRED WHICH IS IN EXCESS OF THE P2''%''' THRESHOLD SHALL BE ALLOWED AS DEDUCTION UNDER 3CLAIMS AGAINST THE ESTATE.4 A) B) C) D) BOTH STATEMENTS ARE TRUE ONLY THE FIRST STATEMENT IS TRUE ONLY THE SECOND STATEMENT IS TRUE NEITHER STATEMENTS ARE TRUE

#'. WHICH OF THE FOLLOWING IS INCLUDED IN THE TERM 3FUNERAL EXPENSES.4 A) MOURNING APPAREL OF A !'-YEAR OLD LEGITIMATE CHILD OF THE DECEASED B) HOSPITAL BILLS DURING THE LAST ILLNESS OF THE DECEASED C) BURIAL EXPENSES DEFRAYED BY THE RELATIVES OF THE DECEASED D) OBITUARY NOTICES TO RELATIVES AND FRIENDS #1.THE AMOUNT OF FUNERAL EXPENSES THAT MAY BE DEDUCTED FROM GROSS ESTATE A) #/ OF THE GROSS ESTATE OR ACTUAL FUNERAL EXPENSES% WHICHEVER IS LOWER B) ALWAYS #/ OF THE GROSS ESTATE C) ACTUAL FUNERAL EXPENSES INCURRED D) #/ OF THE GROSS ESTATE OR ACTUAL FUNERAL EXPENSES INCURRED WICHEVER IS HIGHER #2.THE DEDUCTIBLE AMOUNT OF FUNERAL EXPENSES IS P2''%''' IF THE ACTUAL EXPENSES AND THE GROSS ESTATE AMOUNT TO A) B) C) D) ACTUAL% P1+#%'''-GROSS ESTATE% P!%#''%''' ACTUAL P21'%'''- GROSS ESTATE% P!%3''%''' BOTH A AND B NEITHER A NOR B

#3. HOW MUCH IS THE DEDUCTIBLE AMOUNT OF FUNERAL EXPENSESN UNDER EACH OF THE FOLLOWING INDEPENDENT CASES? ACTUAL GROSS ESTATE CASE 1 1)'%''' !%'''%''' CASE 2 1!'%''' 2%+''%''' CASE 3 2'*%#'' !%2#'%''' CASE1 CASE 2 CASE3 A) 1)'%''' 1!#%''' 2'*%#'' B) 1)'%''' 1!'%''' 2''%''' C) 2''%''' 1!'%''' 2''%''' D) 2''%''' 1!#%''' 212%#'' #!.WHICH OF THE FOLLOWING IS NOT INCLUDED IN THE VALUE OF THE GROSS ESTATE? A)(UDICIAL EXPENSES B)CLAIMS AGAINST INSOLVENT PERSON C)BENEFITS RECEIVED UNDER RA !+1*

D)THE UNDIMISHED VALUE OF THE PROPERTY MORTGAGED ##.THE FOLLOWING ARE RE0UISITES IN ORDER THAT CLAIMS AGAINST THE DECEDENT"S ESTATE MAY BE DEDUCTIBLE EXCEPT A) B) C) D) THEY MUST BE EXISTING AGAINST THE ESTATE THEY MUST BE REASONABLY CERTAIN AS TO AMOUNTS THEY MUST HAVE BEEN PRESCRIBED THEY MUST BE ENFORCED BY THE CLAIMANT

#&.ONE OF THE FOLLOWING IS DEDUCTIBLE AS CLAIM AGAINST THE ESTATE A) AN OBLIGATION CONTRACTED BY THE DECEDENT ONE,1) DAY BEFORE HE DIED B) AN OBLIGATION OF THE DECEDENT WHICH PRESCRIBED WHILE THE DECEDENT WAS STILL ALIVE C) AN OBLIGATION WHICH WAS NOT REDUCED IN WRITING UNDER THE STATUTES OF FRAUD D) AN OBLIGATION WHICH SHALL BE PAID BY THE HEIRS #*. ALL OF THE FOLLOWING% EXCEPT ONE% ARE DEUDCTIBLE FROM THE ESTATE OF THE DECEDENT WHO DIED SEPTEMBER 3'% 2''& $ A) INCOME TAX ON INCOME EARNED FROM (ANUARY TO SEPTEMBER 2+% 2''& B) GIFT TAXES ON DONATIONS GIVEN (UNE 12% 2''& C) REAL PROPERTY TAXES PAYABLE DURING THE LAST 0UARTER OF 2''& D) INCOME TAX ON INCOME EARNED DURING THE LAST 0UARTER OF 2''& #).STATEMENT 1$ IF THE PROCEEDS OF A MORTGAGE LOAN IS MERELY AN ACCOMODATION LOAN% ITS VALUE MUST BE INCLUDED IN THE GROSS ESTATE AS A RECEIVABLE AMOUNT AND AS A DEDUCTION THEREOF STATEMENT 2$IF THERE IS LEGAL IMPEDIMENT TO RECOGNI E THE ACCOMODATION LOAN AS A RECEIVABLE OF THE ESTATE% THE UNPAID MORTGAGE PAYABLE SHALL NOT BE ALLOWED AS A DEDUCTION FROM THE GROSS ESTATE A) B) C) D) ONLY THE 1ST STATEMENT IS CORRECT BOTH STATEMENTS ARE CORRECT ONLY THE 2ND STATEMENT IS CORRECT NEITHER STATEMENT IS CORRECT

#). THE FOLLOWING EXPENSES AND OBLIGATIONS WERE LEFT BY BONING UPON HIS DEATH$ NOTES PAYAB LE LOANS PAYABLE% PNB ACCOUNTS RECEIVABLE% DEBTOR NOT INSOLVENT ACCOUNTS RECEIVABLE% DEBTOR IS INSOLVENT DEATH BENEFITS FROM EMPLOYER MORTGAGE PAID INCOME TAXES ON INCOME OF DECEDENT"S ESTATE 3'%''' 3''%''' !'%''' &'%''' 2''%''' #'%''' *%#''

THE TOTAL AMOUNT DEDUCTIBLE FROM GROSS ESTATE IS A) B) C) D) &''%''' ##'%''' 1%#&'%''' #&'%'''

&'.CASUALTY LOSSES ARE DEDUCTIBLE FROM THE GROSS ESTATE IF 1ST STATEMENT$ SUCH LOSS WAS INCURRED DURING THE SETTLEMENT OF THE ESTATE 2ND STATEMENT$SUCH LOSS WAS INCURRED NOT LATER THAN THE LAST DAY FOR THE PAYMENT OF THE ESTATE TAX A) B) C) D) BOTH STATEMENTS ARE FALSE 1ST STATEMENT IS FALSE- 2ND STATEMENT IS TRUE 1ST STATEMENT IS TRUE- 2ND STATEMENT IS FALSE BOTH STATEMENTS ARE TRUE

&1.Y% A FILIPINO RESIDENT% DIED ON NOVEMBER #% 2''& AND HIS ESTATE INCURRED LOSSES DUE TO$ 1ST LOSS$ FROM FIRE ON FEBRUARY 2% 2''& OF IMPROVEMENTS ON HIS PROPERTY- NOT COMPENSATED BY INSURANCE 2ND LOSS$ FROM FLOOD ON FEBRUARY 2#&% 2''* OF HOUSEHOLD FURNITURE- ALSO NOT COMPENSATED BY INSURANCE A) B) C) D) 1ST LOSS IS NOT DEDUCTIBLE AND 2ND LOSS IS DEDUCTIBLE BOTH LOSSES ARE NOT DEDUCTIBLE BOTH LOSSES ARE DEDUCTIBLE FROM GROSS ESTATE 1ST LOSS IS DEDUCTIBLE AND 2ND LOSS IS NOT

&2.WHICH OF THE FOLLOWING LOSSES IS DEDUCTIBLE? A)DESTRUCTION OF A HOUSE BY AN EARTH0UAKE WHICH KILLED THE DECEDENT B)SHIPWRECK WHICH OCCURRED BEFORE THE DEATH OF THE DECEDENT BUT WAS ONLY DISCOVERED AFTER HIS BURIAL C)TOTAL WRECKAGE OF A CAR IN AN ACCIDENT BUT WAS FULLY COMPENSATED BY A COMPREHENSIVE INSURANCE D)THEFT WHICH OCCURRED DURING BURIAL OF THE DECEDENT &3.LI A DIED ON (ULY #% 2''* LEAVING THE FOLLOWING DATA ON DEDUCTIONS$ UNPAID 2''& REAL ESTATE TAXES UNPAID 2''* REAL PROPERTY TAXES INCOME TAX ON INCOME FROM (AN 1 TO (ULY !% 2''* LOSSES FROM FIRE THAT OCCURRED ON (ULY 3,&'/ WAS COMPENSATED BY INSURANCE) CASUALTY LOSS ON SEPTEMBER 2''* BUILDING DESTROYED BY EARTH0UAKE ON FEBRUARY 2''* A) B) C) D) 1%3&#%''' #&#%''' )!#%''' #2#%''' !'%''' !'%''' 3#%''' )''%''' !#'%''' 1%3''%'''

&!.CHE CUA% A NONRESIDENT ALIENT% DIED LEAVING THE FOLLOWING ASSETS$ DOMESTIC SHARES FOREIGN SHARES TANGIBLE PERSONAL PROPERTY% PHILIPPINES EXPENSES, DEDUCTIBLE) 1%'''%''' 3%'''%''' &%'''%''' 1%2''%'''

NOTE-THE COUNTRY WHERE SHE IS A CITI EN AND RESIDENT DOES NOT IMPOSE TRANSFER TAX ON TRANSMISSION OF INTANGIBLES OF FILIPINOS. THE NET ESTATE SUB(ECT TO TAX IN THE PHILIPPINES IS A) B) C) D) #%2)'%''' 3%)''%''' !%)''%''' !%2)'%'''

&#. TA PUE% A NON-RESIDENT ALIEN% SINGLE% DIED LEAVING THE FOLLOWING PROPERTIES AND DEDUCTIONS$ SHARES% DOMESTIC CORPORATION SHARES% FOREIGN CORPORATION TANGIBLE PERSONAL PROPERTY DEDUCTIBLE EXPENSES #''%''' #''%''' 1%#''%''' #''%'''

ASSUMING THERE IS NO RECIPROCITY% THE ESTATE TAX PAYABLE IS A) B) C) D) 1%&''%''' 1%#''%''' 1'3%''' +#%'''

NUMBERS 66 AND 67 ARE BASED ON THE FOLLOWING INFORMATION: MHAR DEHRER% A GERMAN RESIDING IN MUNICH% GERMANY HAD THE FOLLOWING DATA AT THE TIME OF HIS DEATHEXPENSES$ FUNERAL EXPENSES INCURRED IN THE PHIL. 2#%''' FUNERAL EXPENSES INCURRED ABROAD ? ACCOUNTANT"S FEES AND AUDIT FEES #%''' MEDICAL EXPENSES-2 MONTHS BEFORE DECEDENT"S DEATH #'%''' UNPAID MORTGAGE ON THE PROPERTY LOCATED ABROAD !'%''' CLAIMS AGAINST THE EATATE 2#%''' PROPERTIES$ REAL PROPERTY LOCATED IN OSAKA% (APAN LOT SITUATED IN DAVAO CITY SHARES OF STOCK IN (APANESE CORPORATION OTHER TANGIBLE PERSONAL PROPERTIES-PHIL. 2%!''%''' 1%'''%''' &''%''' 1%'''%'''

&&. THE GROSS ESTATE ON THE ESTATE OF MHAR DEHRER IS A) B) C) D) #%'''%''' 1%'''%''' 2%'''%''' 2%&''%'''

&*. IN NUMBER && ABOVE% IF THE TOTAL DEDUCTIONS ALLOWED AMOUNT TO P&'%'''% HOW MUCH IS THE AMOUNT OF FUNERAL EXPENSES ABROAD? A) 1''%''' B) )'%'''

C) 1!#%''' D) ##%''' &).WHICH OF THE FOLLOWING PROPERTIES OF ETANG WHO DIED DECEMBER !% 2'') IS SUB(ECT TO VANISHING DEDUCTION? PROPERTY 51-CAR PURCHASED 3 YEARS AGO FROM MITSUBISHI MOTORS% BATANGAS CITY PROPERTY 52-LAND INHERITED FRO HER MOTHER IN 2''# THE ESTATE TAX THEREON HAVE NOT BEEN PAID PROPERTY 53-DONATION FROM A FRIEND IN 2''! PROPERTY 5!-COMMUNITY PROPERTY INHERITED DEECEMBER 2% 2''3 OR FIVE ,#) YEARS BEFORE MARRIAGE PROPERTY 1 A)NO B)NO C)YES D)YES PROPERTY2 NO NO NO YES PROPERTY3 YES YES NO NO PROPERTY! YES NO YES NO

&+.WHICH OF THE FOLLOWING IS A MULTIPLIER DEDUCTION FOR PURPOSES OF COMPUTING THE VANISHING DEDUCTION? A) B) C) D) BENEFITS RECEIVED UNDER RA !+1* MEDICAL EXPENSES STANDARD DEDUCTION TRANSFER FOR PUBLIC PURPOSE

*'.STATEMENT 1$ VANISHING DEDUCTION IS ALWAYS A DEDUCTION FROM THE EXCLUSIVE PROPERTIES OF THE DECEDENT STATEMENT 2$ A PROPERTY IS SUB(ECT TO VD IF IT HAS BEEN PURCHASED THRU EXCHANGE WITH A PROPERTY INHERITED WITHIN # YEARS PRIOR TO THE DEATH OF THE PRESENT DECEDENT A) B) C) D) STATEMENT 1 IS TRUE- STATEMENT 2 IS FALSE STATEMENT 1 IS FALSE$ STATEMENT 2 IS TRUE BOTH STATEMENTS ARE TRUE BOTH STATEMENTS ARE FALSE

*1. CHRISTOPHER DIED ON OCTOBER #% 2''& LEAVING A PARCEL OF LAND VALUED AT P)''%''' TO HIS NEPHEW% MENDELL. ON (UNE 1'% 2'')% MENDELL MARRIED CRISTITA. PRIOR TO THE CELEBRATION OF THE

MARRIAGE% THEY ORALLY AGREED THAT THEY SHALL BE GOVERNED BY THE CON(UGAL PARTNERSHIP OF GAINS. WHICH STATEMENT IS CORRECT? A) THE SPOUSES SHALL BE GOVERNED BY THE CON(UGAL PARTNERSHIP OF GAINS. THUS% IF MENDELL DIES ON MAY 2'% 2''+ THE VD SHALL BE CLASSIFIED AS A DEDUCTION FROM THE EXCLUSIVE PROPERTIES B) THE SPOUSES SHALL BE GOVERNED BY THE ABSOLUTE COMMUNITY OF PROPERTY REGIME. THUS% IF CRISTITA DIES ON MAY 2'% 2''+% THE LAND SHALL BE SUB(ECT TO VD OF ONE-HALF OF THE VALUE C) THE SPOUSES SHALL BE GOVERNED BY THE ABSOLUTE COMMUNITY OF PROPERTY REGIME. NONETHELESS% THE DEATH OF CRISTITA ON MAY 2'% 2''+ WILL NOT SUB(ECT HER SHARE TO A VD D) THE SPOUSES SHALL BE GOVERNED BY THE ABSOLUTE COMMUNITY OF PROPERTY REGIME. THUS% IF MENDELL DIES ON MAY 2'% 2''+% ONLY HIS 2 SHARE IN THE LAND SHALL BE SUB(ECT TO A VD. *2.ALL OF THE FOLLOWING% EXCEPT ONE% ARE NOT DEDUCTIBLE FROM THE GROSS ESTATE OF A NON-RESIDENT ALIEN A) B) C) D) VANISHING DEDUCTION MEDICAL EXPENSES FAMILY HOME STANDARD DEDUCTION

*3. RODOLFO% A CITI EN OF THE PHILIPPINES AND RESIDENT OF BACOLOD CITY% DIED TESTATE ON MAY 1'% 2''&. AMONG HIS GROSS ESTATE ARE PROPERTIES INHERITED FROM HIS DECEASED FATHER WHO DIED APRIL !% 2''3. WHAT PERCENTAGE OF DEDUCTION WILL BE USED IN COMPUTING THE AMOUNT OF VANISHING DEDUCTION? A) B) C) D) )'/ OF VALUE TAKEN AS BASIS FOR VD 1''/ OF VALUE TAKEN AS BASIS FOR VD &'/ OF VALUE TAKEN AS BASIS FOR VD !'/ OF VALUE TAKEN AS BASIS FOR VD

*!. VAL HALLADA DIED ON NOVEMBER 2'% 2''&. SOME OF THE PROPERTIES HE LEFT ARE THE FOLLOWING$ MV MV MODE OF DATE OF DATE DEATH OF ASSETS AC0UISTION AC0UISTION AC0UIRED VAL H.

LAND CAR

DONATION PURCHASE

*-3-'2 1'-2-'#

#''%''' )''%'''

3#'%''' +)'%'''

OTHER INFO$ 1.THE GROSS ESTATE OF THE DECEDENT AMOUNTS TO P3%'''%''' 2.THE LAND WAS MORTGAGED FOR P#'%''' WHICH WAS DEDUCTED IN PRIOR ESTATE AND VAL H. PAID THE SAME AMOUNT BEFORE HE DIED 3. THE ALLOWABLE DEDUCTIONS TOTAL P12#%'''% WHICH INCLUDES MEDICAL EXPENSES OF P3'%'''. IT EXCLUDES BE0UEST TO A CHARITABLE INSTITUTION IN THE AMOUNT OF P#'%'''. THE VANISHING DEDUCTION IS A) B) C) D) #)%1'' #*%#'' &*%*)3 &*%')3

*#.IN DETERMINING THE NET ESTATE OF THE DECEDENT% WHICH OF THE FOLLOWING RULES IS CORRECT? A) REAL ESTATE ABROAD IS INCLUDED IN THE GROSS ESTATE OF A DECEDENT WHO IS A NON-RESIDENT ALIEN B) SHARES OF STOCKS BEING INTANGIBLE PROPERTY SHALL BE INCLUDED IN THE DECEDENT"S GROSS ESTATE WHEREVER SITUATED C) VANISHING DEDUCTION MUST BE SUB(ECTED TO LIMITATIONS D) FUNERAL EXPENSES ARE DEDUCTIBLE TO THE EXTENT OF #/ OF TOTAL GROSS ESTATE BUT NOT EXCEEDING P1''%''' *&. PEPE DIED ON AUGUST 1#% 2''&. HIS DATA ARE AS FOLLOWS$ COMMUNITY PROPERTIES EXCLUSIVE PROPERTIES OF PEPE EXCLLUSIVE PROPERTIES OF PEPE"S WIFE DEDUCTIONS ,EXCEPT STANDARD DEDUCTION) P2%'''%''' 3%'''%''' 1%'''%''' *''%'''

INCLUDED IN THE P3%'''%''' IS A PARCEL OF LAND WORTH P2''%''' AND A CAR WORTH P!''%'''% RESPECTIVELY. THE LAND WAS DONATED TO HIM BY HIS UNCLE ON MAY !% 2''! WITH A VALUE OF P1#'%'''. AT THE TIME OF DONATION% THE LAND WAS MORTGAGED FOR P3'%''' WHICH WAS PAID BY HIS UNCLE. THE CAR HAD A VALUE OF P#''%''' WHEN IT WAS INHERITED BY PEPE FROM HIS

MOTHER 21.2 YEARS AGO AND MORTGAGED FOR P#'%''' WHICH WAS PAID BY PEPE BEFORE HE DIED. THE VANISHING DEDUCTION ON THE ESTATE OF PEPE WASA) B) C) D) 2#)%''' 2&2%#2' 2)3%)'' NONE

**. ELOPRE% MARRIED (UNE #% 2''! DIED ON APRIL 2+% 2''& WITH THE FOLLOWING DATA$ GROSS ESTATECOMMUNITY PROPERTY P3%'''%''' EXCLUSIVE 2%'''%''' SAID AMOUNT INCLUDES A LAND WHICH HE RECEIVED AS A GIFT FROM HIS FATHER A MONTH BEFORE THE MARRIAGE% VALUED AT P#!'%'''. HIS FATHER MORTGAGED THE LAND THE LAND FOR P2'%''' WHICH WAS PAID BY ELOPRE. ELOPRE MORTGAGED ALSO SAID LAND FOR P#'%''' BUT WAS ABLE TO PAY ONLY P2'%''' UNTIL HIS DEATH. EXPENSES CLAIMED ,EXCLUDING THE UNPAID MORTGAGE) AMOUNTED TO P1*'%'''. THE VANISHING DEDUCTION ISA) 3))%''' B) 3)!%''' C) 3)'%''' D) NONE *).IN NUMBER ** ABOVE% THE NET TAXABLE ESTATE ISA) B) C) D) 2%'1&%''' 1%2')%''' 3%!1&%''' 2%2')%'''

*+.STATEMENT 1$ UNPAID LOANS CONTRACTED PRIOR TO DEATH MAY BE DEDUCTED EVEN IF NOT NOTARI ED IF NOTARI ATION OF CONTRACTS IS NOT A BUSINESS POLICY OF THE CREDITOR STATEMENT 2$ FOR ESTATE TAX PURPOSES% SEVERAL FAMILY HOMES MAY BE DEDUCTED PROVIDED THE MAXIMUM AMOUNT IS P1%'''%''' A) ONLY STATEMENT 1 IS CORRECT B) BOTH STATEMENTS ARE CORRECT C) ONLY STATEMENT 2 IS CORRECT

D) BOTH STATEMENTS ARE INCORRECT )'.STATEMENT 1$ AN UNMARRIED INDIVIDUAL CANNOT CONSTITUTE A FAMILY HOME STATEMENT 2$ UNPAID MEDICAL EXPENSES AT THE TIME OF DEATH ARE DEDUCTIBLE AS 3CLAIMS AGAINST THE ESTATE4 A) B) C) D) ONLY STATEMENT 1 IS CORRECT BOTH STATEMENTS ARE CORRECT ONLY STATEMENT 2 IS CORRECT BOTH STATEMENTS ARE INCORRECT

)1. MAMA MATHAY% WIDOW% A CITI EN OF THE PHILIPPINES RESIDING IN VANCOUVER% CANADA% DIED ON DECEMBER 2'% 2''* LEAVING THE FOLLOWING PROPERTIES$ REAL PROPERTY ,INHERITED FROM HER HUSBAND ON MAY 3% 2''&% VALUED THEN AT P2%&''%''') PERSONAL PROPERTIES IN CANADA REAL AND PERSONAL PROPERTIES IN THE PHIL. FAMILY HOME IN CANADA OBLIGATIONS$ FUNERAL EXPENSES INCURRED IN CANADA OTHER DEDUCTIBLE EXPENSES THE GROSS ESTATE OF MAMA MATHAY ISA) B) C) D) *%!3'%''' *%'*'%''' &%*&'%''' &*'%''' 2#'%''' )#'%''' 2%+&'%''' 1%3''%''' &*'%''' 2%#''%'''

)2.THE DEDUCTION FOR FAMILY HOME ISA) B) C) D) 2%#''%''' 1%'''%''' 1%2''%''' NONE

)3. THE VANISHING DEDUCTION ISA) 1%*)&%'#&.#2 B) 1%**2%'#+.2'

C) 1%**3%*').2' D) NONE )!.DECEDENT DIED LEAVING A FAMILY HOME COMPOSED OF THE FOLLOWING$ HOUSE% CON(UGAL PROPERTY WORTH P)''%'''% AND THE LAND IN WHICH HE EXCLUSIVELY OWNED VALUED AT P!''%'''. HE ALSO OWNS A VACATION HOUSE IN BAGUIO WORTH P*''%'''. THE DEDUCTIBLE AMOUNT OF FAMILY HOME ISA) B) C) D) )''%''' 1%2''%''' 1%+''%''' 1%'''%'''

)#. THE DECEDENT% MARRIED% DIED LEAVING A FAMILY HOME VALUED AT P1%#''%'''% COMPOSED OF THE HOUSE ,CON(UGAL PROPERTY) AND THE LOT,EXCLUSIVE PROPERTY). SEVENTY PERCENT,*'/) OF THE VALUE OF THE FAMILY HOME PERTAINS TO THE HOUSE% WHILE THIRTY PERCENT,3'/) PERTAINS TO THE LOT. THE AMOUNT DEDUCTIBLE FROM THE GROSS ESTATE IS 6 A) B) C) D) 1%#''%''' 1%'''%''' +*#%''' #2#%'''

)&. BONG% SINGLE AND A RESIDENT CITI EN% DIED WITH PROPERTIES CONSTITUTING HIS GROSS ESTATE OF P!%'''%'''. ACTUAL FUNERAL EXPENSES AMOUNTED TO P1#'%''' AND OTHER CHARGES AGAINST THE ESTATE AMOUNTED TO P21'%'''. THE NET TAXABLE ESTATE ISA) B) C) D) 3%&!'%''' 2%&!'%''' 3%*!'%''' 2%#+'%'''

)*.DECEDENT% MARRIED IN 1+*&% DIED LEAVING THE FOLLOWING$ REAL PROPERTIES FAMILY HOUSE OTHER REAL PROPERTIES% EXCLUSIVE OF DECEDENT FAMILY LOT% EXCLUSIVE OF DECEDENT FUNERAL EXPENSES P3%'''%''' 1%'''%''' 2%'''%''' !''%''' 2*#%'''

MEDICAL EXPENSES TAXES AND LOSSES THE NET TAXABLE ESTATE ISA) B) C) D) 2%!#'%''' 1%1#'%''' 2%2#'%''' 1%2#'%'''

&#'%''' 1%3''%'''

)). PAID MEDICAL EXPENSES FOR CONFINEMENT AT TIGOK HOSPITAL FROM MAY 1#-23% 2''* ,P2'%''' REMAIN UNPAID) HOSPITALI ATION EXPENSES ,(UNE 3-&% 2''#) EXPENSES FOR THE SETTLEMENT OF THE ESTATE$ ACCEPTANCE FEE% (UNE 2)% 2''* COURT FEES AND OTHER EXPENSES% (ULY 1&% 2''* APPEARANCE OF LAWYER IN COURT% SEPT #% 2''* APPEARANCE OF LAWYER IN COURT% NOV 2+% 2''*

P)'%''' 21%#'' 2'%''' 12%''' 2%''' 2%'''

BASED ON THE DATA GIVEN ABOVE% HOW MUCH IS THE DEDUCTIBLE MEDICAL AND (UDICIAL EXPENSES IF THE DECEDENT DIED MAY 23% 2''*? MEDICAL EXPENSES (UDICIAL EXEPNSES A) )'%''' 3&%''' B) 1''%''' 3&%''' C) )'%''' 3!%''' D) 1''%''' 3!%''' )+. STATEMENT 1$ UNDER THE CON(UGAL PARTNERSHIP OF GAINS% THE VANISHING DEDUCTION IS ALWAYS A DEDUCTION FROM EXCLUSIVE PROPERTIES STATEMENT 2$ UNDER THE ABSOLUTE COMMUNITY OF PROPERTY REGIME% THE VANISHING DEDUCTION IS ALSO AGAINST COMMUNITY PROPERTY A) B) C) D) TRUE% TRUE TRUE% FALSE FALSE% FALSE FALSE% TRUE

+'. THE FOLLOWING DATA RELATES TO CARL% MARRIED TWO,2) YEARS AGO% DIED LEAVING THE FOLLOWING$ GROSS ESTATE LAND AC0UIRED BY DONATION FROM HIS FATHER 3.12 P1!%'''%'''

YEARS AGO$ MARKET VALUE% DATE OF DONATION MARKET VALUE% DATE OF DEATH FUNERAL EXPENSES (UDICIAL EXPENSES UNPAID MORTGAGE ON LAND AT TIME OF DONATION UNPAID TAXES LOSSES TRANSFER FOR PUBLIC PURPOSES MEDICAL EXPENSES

2''%''' 3''%''' 3#%''' 1#%''' 1''%''' 1'%''' 2#%''' 3#%''' !#%'''

CARL PAID P&'%''' TO THE MORTGAGE OF THE LAND A YEAR BEFORE HIS DEATH. ASSUMING CARL WAS UNDER CON(UGAL PARTNERSHIP OF GAINS% THE TOTAL ORDINARY DEDUCTIONS FROM EXCLUSIVE PROPERTY ISA) B) C) D) !+%&'' )+%&'' 12!%&'' NONE

+1. IN PROBLEM +' ABOVE% ASSUMING THAT CARL WAS UNDER ABSOLUTE COMMUNITY OF PROPERTY REGIME% THE TOTAL AMOUNT DEDUCTIBLE FROM THE COMMUNITY PROPERTY ISA) B) C) D) 12#%''' 13!%&'' 1*!%&'' NONE

+2.ALLADIN% FILIPINO% MARRIED% DIED (AN 1% 2''&% LEAVING THE FOLLOWING PROPERTIES$ INHERITED FROM HIS BROTHER WHO DIED MAY 3% 2''!$ RICELAND 1%'''%''' RESIDENTIAL LAND 2%'''%''' INHERITED FROM HIS MOTHER WHO DIED APRIL 12% 2''2 OR FIVE DAYS AFTER HIS MARRIAGE$ COCONUT LAND !2'%''' AC0UIRED THRU ALLADIN"S WIFE LABOR$ FAMILY HOME CAR COMMERCIAL LAND 2%'''%''' #''%''' 1%'''%'''

GOLD NECKLACE ,AC0UIRED BY ALLADIN DURING A PREVIOUS MARRIAGE WICH HAD A LEGITIMATE DESCENDANT) )'%''' THE RICELAND AND THE RESIDENTIAL LAND WERE PREVIOUSLY MORTGAGED FOR P3#'%''' WHEN INHERITED WHERE P2''%''' WAS PAID BY ALLADIN DURING HIS LIFETIME. THE COCONUT LAND WAS MORTGAGED FOR P+!%''' OF WHICH P1!%''' WAS PAID BEFORE HIS DEATH. ALSO% ALLADIN% BY WILL% BE0UEATHED TO MARIKINA CITY THE SUM OF P2''%''' FOR EXCLUSIVELY PUBLIC PURPOSE. THE ESTATE INCURRED THE FOLLOWING EXPENSES$ FUNERAL EXPENSES (UDICIAL EXPENSES PORTION OF FAMILY HOME DESTROYED BY FIRE ON (AN #%2''& MEDICAL EXPENSES THE GROSS ESTATE OF ALLADIN ISA) B) C) D) 3%#''%''' *%'''%''' #%2#'%''' 3%#+*%'2' P1!'%''' )'%''' 1''%''' !'%'''

+3. IN NUMBER +2 ABOVE% THE VANISHING DEDUCTION ISA) B) C) D) 2%'32%''' 22'%+)' 2%1!#%''' NONE

+!. IN NUMBER +3 ABOVE% THE NET TAXABLE ESTATE ISA) B) C) D) 2%21*%#'' #1#%''' #3#%''' NONE

+#.LUIS RAYMUND DIED LEAVING THE FOLLOWING$ EXCLUSIVE PROPERTIES CON(UGAL PROPERTIES P2%'''%''' 2%#''%'''

(UDICIAL EXPENSES FUNERAL EXPENSES NOTES PAYABLE,ONLY 2 IS NOTARI ED) CLAIMS AGAINST INSOLVENT PERSON ,#'/ IS COLLECTIBLE) PROCEEDS OF LIFE INSURANCE,BENEFICIARY IS WIFE-REVOCABLE) DEATH BENEFITS UNDER RA !+1* MEDICAL EXPENSES,1.2 IS NOT SUPPORTED BY RECEIPTS) THE NET TAXAB LE ESTATE ISA) B) C) D) 1%)+2%#'' 2%#!'%''' 1%#2'%''' 1%)&2%#''

!#%''' 1#'%''' 1#'%''' 12'%''' 2''%''' 1)'%''' ##'%'''

+&. THE FOLLOWING DATA RELATES TO THE ESTATE OF ABANDONADO$ HOUSE AND LOT ,FAMILY HOME) IN 0C% ONAL ,ASSESSED VALUE)% P1%1#'%''' PERSONAL PROPERTIES BENEFITS REC"D FROM EMPLOYER AS A CONSE0UENCE OF DEATH UNPAID MORTGAGE ON A RICELAND WITH A VALUE OF P1%'''%''' CLAIMS AGAINST DIMALUPIG% INSOLVENT P2%23'%''' 2%#''%''' 1#'%''' 2''%''' 3#%'''

BASED ON THE ABOVE INFO% THE VALUE OF THE GROSS ESTATE OS ABANDONADO ISA) B) C) D) #%+1#%''' !%)3#%''' !%&)#%''' #%*3'%'''

NUMBERS 97 THRU 99 ARE BASED ON THE FOLLOWING INFO: ON OCTOBER 1#% 2''&% BEN(AMIN% A FILIPINO CITI EN AND A RESIDENT OF MANILA% DIED INTESTATE LEAVING HIS WIFE% DIANA% AND HIS 2 ILLEGITIMATE CHILDREN % AUBREY AND BARBARA. THE ESTATE OF THE DECEASED CONSISTED OF THE FOLLOWING$ REAL PROPERTY-CON(UGAL

HOUSE AND LOT ,FAMILY HOME)-MANILA. THIS PROPERTY HAS AN ASSESSED VALUE OF P2%#''%''' AT THE TIME OF DEATH BUT VALUED IN THE ONAL VALUATION OF THE BIR FOR P2%+''%'''. PERSONAL PROPERTY-CON(UGAL THE TOTAL VALUE WAS PLACED AT P1%&''%'''. INCLUDED IN THE P1%&''%''' ARE PROCEEDS OF AN IRREVOACABLE LIFE INSURANCE POLICY OF P1''%''' FROM PHILAM LIFE INSURANCE COMPANYTAKEN BY BEN(AMIN WITH BARBARA AS THE BENEFICIARY. THE PREMIUMS WERE PAID OUT OF CON(UGAL PROPERTY OF THE SPOUSES. THE FOLLOWING DEDUCTIONS WERE CLAIMED BY THE HEIRS$ A.FUNERAL EXPENSES B.UNPAID LOANS% NOTARI ED C.LOSSES INCURRED DURING THE SETTLEMENT THE ESTATE +*. THE TOTAL GROSS ESTATE OF BEN(AMIN ISA) B) C) D) !%#''%''' !%1''%''' !%'''%''' !%!''%''' P1''%''' *#%''' 2#%'''

NOTE$SEE NO. ++ FOR THE SOLUTION +). THE DEDUCTIBLE AMOUNT OF FAMILY HOME ISA) B) C) D) 2%+''%''' 1%!#'%''' 1%'''%''' NONE

NOTE$ SEE NO. ++ FOR THE SOLUTION ++. THE NET TAXABLE ESTATE ISA) B) C) D) 1''%''' 1#'%''' +#'%''' NONE

1''.WHICH OF THE FOLLOWING DEDUCTIONS CANNOT BE CLAIMED BY A NON-RESIDENT ALIEN?

1.VANISHING DEDUCTION ON A PROPERTY SITUATED IN THE PHIL 2.FUNERAL EXPENSES INCURRED ABROAD 3.FAMILY HOME SITUATED ABROAD !.DONATION OF A PROPERTY FOR USE BY A FOREIGN GOV"T A) B) C) D) 1 ONLY 1 AND 2 3 AND ! 1 AND !

NUMBERS 101 THRU 103 ARE BASED ON THE FOLLOWING INFO: WILSON DIED OF A CAR ACCIDENT. HE DIED INTESTATE ON OCT 1'% 2''&% SURVIVED BY HIS WIFE% GING AND A SON. EXCLUSIVE PROPERTIES OF GING$ CAR LOT IN 0C OTHER REAL AND PERSONAL PROPERIES EXCLUSIVE PROPERTIES OF WILSON$ HOUSE AND LOT IN STA ROSA% LAGUNA% FAMILY HOME OTHER PERSONAL PROPERTIES OTHER REAL PROPERTIES P!''%''' 2%'''%''' )''%'''

1%+''%''' )''%''' 1%#''%'''

CON(UGAL PROPERTIES OF THE SPOUSES$ CASH ON HAND AND IN BANK #''%''' RECEIVABLE AS PRI E IN A RAFFLE SPONSORED BY PICPA #'%''' RECEIVABLE FROM AN INSURANCE COMPANY WHERE THE SON% GINO WAS DESIGNATED AS A REVOCABLE BENEFICIARY. THE PREMIUMS WERE PAID OUT OF THE CON(UGAL FUNDS. 1#'%''' THE FOLLOWING DEDUCTIONS WERE CLAIMED$ FUNERAL EXPENSES (UDICIAL EXPENSES CLAIMS AGAINST THE ESTATE% NOT NOTARI ED CLAIMS AGAINST INSOLVENT PERSONS UNPAID MORTGAGE ON OTHER REAL PROPERTIES ,CONTRACTED FOR THE BEMNEFIT OF THE CON(UGAL PROPERTY UNPAID MORTGAGE ON HOUSE AND LOT IN LAGUNA,THE PROCEEDS OF WHICH DID NOT 1+'%''' 1#%''' #'%''' 3'%''' 2''%'''

REDOUND TO THE BENEFIT OF THE FAMILY) ACCRUED INCOME TAXES INCOME TAX ON INCOME EARNED FROM OCT 11 TO DECEMBER 31% 2''& 1'1. THE GROSS ESTATE ISA) B) C) D) !%+3'%''' !%+''%''' !%)#'%''' )%13'%'''

3#'%''' 3#%''' *%#''

1'2. THE DEDUCTIBLE SHARE OF THE SURVIVING SPOUSE ISA) B) C) D) 2##%''' 12*%#'' 112%#'' 2%22*%#''

SEE THE SOLUTION IN NUMBER 1'3. 1'3. THE NET ESTATE SUB(ECT TO TAX ISA) B) C) D) 1%+&2%#'' 1%+**%#'' 1%)#'%''' NONE

1'!.ALANIS% A RESIDENT CITI EN% SINGLE BUT HEAD OF THE FAMILY% DIED (AN 3%2''). THE FOLLOWING ARE HIS DATA$ PROPERTIES$ REAL PROPERTIES,EXCLUDING FAMILY HOME OF P1%1''%''') HOUSE AND LOT IN SYDNEY% AUSTRALIA OTHER PERSONAL PROPERTIES DEDUCTIONS$ FUNERAL EXPENSES CLAIMS AGAINST INSOLVENT PERSONS CLAIMS AGAINST THE ESTATE% NOT NOTARI ED UNPAID MORTGAGE ON THE FAMILY HOME 3%2''%''' 1%#''%''' )''%''' 12'%''' 1''%''' #'%''' 3'%'''

THE PERSONAL PROPERTIES DO NOT INCLUDE SHARES OF STOCKS VALUED AT P#'%''' WHICH WERE PURCHASED BY THE DECEDENT FROM ASTRA COMPANY ONE MONTH PRIOR TO HIS DEATH.

THE HOUSE IN SYDNEY WAS INHERITED BY ALANIS FROM HIS FATHER WHO DIED 2 1.! YEARS AGO. SAID PROPERTY WAS MORTGAGED FOR P2''%''' WHICH WAS PAID BY THE DECEDENT BEFORE HIS DEATH. THE GROSS ESTATE ISA) B) C) D) !%'#'%''' &%*#'%''' &%&#'%''' #%##'%'''

1'#. THE TOTAL DEDUCTIONS,EXCLUDING STANDARD DEDUCTION) ISA) B) C) D) 2#'%''' 3''%''' 1%2#'%''' 2%''1%111

1'&. TRILLO% A RESIDENT OF 0C% DIED ON (UNE #% 2''* WITH THE FOLLOWING DATA$ PROPERTY AC0UIRED BY TRILLO BEFORE MARRIAGE PROPERTY AC0UIRED BY HIS WIFE BEFORE MARRIAGE CON(UGAL FAMILY HOUSE AND LOT% 0C% CERTIFIED BY BGY CHAIRMAN HOUSE IN MARBEL CITY,EXCLUSIVE OF TRILLO)% CERTIFIED AS FAMILY HOME BY BGY CHAIRMAN PROCEEDS OF LIFE INSIURANCE% IRREVOCABLE% BENEFICIARY IS THE ESTATE CLAIMS AGAINST INSOLVENT PERSON,!'/ UNCOLLECTIBLE) INTER VIVOS DONATIONS TO CITY GOV"T OF 0C ACTUAL FUNERAL EXPENSES,#'/ PAID BY RELATIVES) (UDICIAL EXPENSES THE NET TAXABLE ESTATE ISA) B) C) D) &%'!'%''' 1%#)'%''' 1%##'%''' 1%3*'%''' 1%#''%''' 1%'''%''' 1%&''%''' 1%'''%''' #''%''' 1''%''' 2''%''' 3''%''' 2#'%'''

ITEMS 107 THRU 110 ARE BASED ON THE FOLLOWING INFO:

PENDUKO MARRIED IN 2''# UNDER THE ABSOLUTE COMMUNITY OF PROPERTY REGIME% DIED ON AUG 3'% 2''*. HE LEFT THE FOLLOWING PROPERTIES AND OBLIGATIONS$ PROPERTIES$ CASH IN BANK P2''%''' RESIDENTIAL LOT INHERITED FROM HIS FATHER ON (UNE 12% 2''! 1%2''%''' FAMILY HOME$ HOUSE ,COMMUNITY PROPERTY) 1%3''%''' LOT,EXCLUSIVE PROPERTY OF PENDUKO) 1%'''%''' PERSONAL PROPERTIES AC0UIRED BY THE SPOUSES DURING MARRIAGE 2''%''' RECEIVABLE FROM HIS SISTER,INSOLVENT) 1''%''' INTER VIVOS DONATION FROM HIS MOTHER ON (ULY 2''*% REVOCABLE 1#'%''' RECEIV ABLE FROM SSS AS NINDEMNITY FOR HOSPITALI ATION 12%''' OBLIGATIONS$ UNPAID MORTGAGE ON THE RESIDENTIAL LOT COINTRACTED BY THE FATHER$ AT THE TIME OF DEATH OF FATHER 3''%''' AT THE TIME OF DEATH OF PENDUKO 1''%''' FUNERAL EXPENSES ,!'/ SHOULDERED BY RELATIVES) )'%''' (UDICIAL EXPENSES ,3'/ WERE INCURRED AFTER & MONTHS) 3#%''' CLAIMS AGAINST THE ESTATE ,INCLUDES UNPAID MEDIACAL EXPENSES OF P12%''') 3#%''' UNPAID MORTGAGE ON THE HOUSE,LOANED TO PENDUKO"S SISTER) 1''%''' CASUALTY LOSS ,#'/ WAS INDEMNIFIED BY THE INSURANCE COMPANY) &'%''' DONATION TO BGY ENGKANTAO,VERBAL DONATION) 2#%''' 1'*. THE GROSS ESTATE ON THE ESTATE OF PENDUKO ISA) B) C) D) !%'&2%''' 3%+''%''' 3%+&2%''' !%'''%'''

1'). THE VANISHING DEDUCTION ON THE ESTATE OF PENDUKO ISA) B) C) D) 3#*%!#' 3*#%#!' 3''%#'' 3&*%!#'

1'+. THE TOTAL ORDINARY DEDUCTIONS FROM THE COMMUNITY PROPERTY OF PENDUKO ISA) B) C) D) )'*%+#' #)2%+'' *)2%+#' &)2%+#'

11'.THE NET TAXABLE ESTATE ISA) B) C) D) !&%#2# +&%#2# 122%'2# NONE

111. ELEANOR% RESIDENT CITI EN% MARRIED AND UNDER THE ABSOLUTE COMMUNITY OF PROPERTY REGIME% DIED ON AUG 2'% 2''*. THE FOLLOWING ARE THE DATA ON THE PROPERTIES AND OBLIGATIONS$ EXCLUSIVE PROPERTIES OF ELEANOR$ PERSONAL PROPERTIES FAMILY HOME COMMUNITY PROPERTIES$ REAL PROPERTIES PERSONAL PROPERTIES FUNERAL EXPENSES (UDICIAL EXPENSES INCURRED UNTIL FEB 2'% 2'') (UDICIAL EXPENSES INCURRED AFTER FEB 2'% 2'') UNPAID TAXES MEDICAL EXPENSES CASUALTY LOSS OCCURRED NOV 2%2''* CASUALTY LOSS OCCURRED MAR #% 2'') HOW MUCH IS THE NET TAXABLE ESTATE? 2%#''%''' 2%'''%''' 1%!''%''' 1%*#'%''' 22'%''' 3'%''' 2'%''' 12%#'' ##'%''' 3#'%''' 13'%'''

A) B) C) D)

3%2&)%#'' 3%2*)%*#' 3%23)%''' 3%22)%'''

112. THE NET DISTRIBUTABLE ESTATE ISA) B) C) D) 3%2*)%*#' 3%!)3%*#' #%!)3%*#' #%!1)%*#'

C. TA CREDIT AND ADMINISTRATI!E PRO!ISIONS 113. ONE IS NOT ENTITLED TO TAX CREDIT FOR TAXES PAID TO FOREIGN COUNTRY A) B) C) D) RESIDENT CITI EN NON-RESIDENT CITI EN RESIDENT ALIEN NON-RESIDENT ALIEN

11!. ONE OF THE FOLLOWING IS NOT A REMEDY AGAINST DOUBLE TAXATION A) ESTATE TAX CREDIT B) VANISHING DEDUCTION C) DELIVERY OF PROPERTY FROM FIDUCIARY HEIR TO FIDEICOMMISSARY IN A FIDEICOMMISSARY SUBSTITUTION D) TRANSFER FOR PUBLIC PURPOSE 11#. BONGO% SINGLE% DIED IN THE PHIL. LEAVING A NET ESTATE IN THE PHIL. OF P1%2''%''' AND P1%)''%''' IN THE UNITED STATES. HIS ESTATE IN THE U.S. PAID AN ESTATE TAX OF P2#%''' IN THAT COUNTRY. THE PHIL. ESTATE TAX DUE AFTER TAX CREDIT FOR THE ESTATE TAX PAID TO U.S. ISA) B) C) D) 22'%''' 1!*%''' +)%''' 11'%'''

NUMBERS 116 AND 117 ARE BASED ON THE FOLLOWING INFO: LANA% SINGLE% AN AMERICAN RESIDING IN THE PHILIPPINES% DIED LEAVING THE FOLLOWING PROPERTIES$ LOCATION OF PROPERTIES PHILIPPINES 7A4 FOREIGN COUNTRY 3B4 FOREGN COUNTRY NET ESTATE P1%#''%''' 2%'''%''' 2%#''%''' FOREIGN ESTATE TAX PAID P' 21'%''' 3'%'''

11&. THE ALLOWAB LE TAX CREDIT ISA) B) C) D) 2!'%''' 23#%''' 2&1%2#' 2&&%2#'

SEE SOLUTION IN 11* BELOW. 11*. THE ESTATE TAX DUE AFTER TAX CREDIT ISA) B) C) D) 23#%3&' 3)'%''' 3*#%''' 1#3%*#'

11). DECEDENT NIDA% RESIDENT CITI EN UNDER ABSOLUTE COMMUNITY OF PROPERTY REGIME. HER DATA ARE AS FOLLOWS$ GROSS ESTATE DEDUCTIONS TAX PAID PHILIPPINES !%'''%''' 3%'''%''' 3A4 FOREIGN COUNTRY &%'''%''' 2%'''%''' 12!%#''

SIXTY PERCENT ,&'/) OF THE NET ESTATE PERTAIN TO COMMUNITY PROPERTY. THE ESTATE TAX DUE AFTER TAX CREDIT ISA) B) C) D) 1*#%#'' &'%''' 3!'%''' NONE

11+. WHAT PERIOD ,FROM THE TIME OF DEATH) IS GIVEN TO FILE THE ESTATE TAX RETURN? HOW ABOUT THE PERIOD OF EXTENSION FOR FILING THE RETURN? FILING EXTENSION A) & MOS. 3' DAYS B) 2 MOS. &' DAYS C) & MOS. 2 YEARS D) & MOS. # YEARS 12'. WHICH OF THE FOLLOWING IS NOT CORRECT? A) A STATEMENT DULY CERTIFIED BY A CPA IS NECESSARY IF THE ESTATE TAX RETURN SHOWS A GROSS VALUE EXCEEDING P2%'''%''' B) EXTENSION OF TIME FOR FILING MAYBE GRANTED BY CIR BUT IT MUST NOT EXCEED 3 MONTHS C) SHARES NOT TRADED IN THE STOCK EXCHANGE SHALL BE VALUED AT ITS BOOK VALUE ON THE VALUATION DATE D) AN ESTATE TAX RETURN IS NECESSARY IN CASE THE TRANSFER IS SUB(ECT TO ESTATE TAX 121. WHICH OF THE FOLLOWING STATEMENTS IS CORRECT? STATEMENT 1$ IN CASE THE AVAILABLE CASH OF THE ESTATE IS NOT SUFFICIENT TO PAY ITS TOTAL TAX LIABILITY% THE ESTATE MAY BE ALLOWED TO PAY THE TAX BY INSTALLMENT STATEMENT 2$ IN C ASE THE ESTATE TAX HAS BEEN PAID BY INSTALLMENT% THE COMPUTATION SHALL ALWAYS BE ON THE CUMULATIVE AMOUNT OF THE NET TAXABLE ESTATE BUT THE AMOUNTS PAID AFTER THE STATUTORY DUE DATE OF THE TAX SHALL BE IMPOSED A PENALTY A) B) C) D) STATEMENT 1 ONLY STATEMENTS 1 AND 2 STATEMENT 2 ONLY NEITHER 1 NOR 2

122. AN ESTATE TAX RETURN IS NOT NECESSARY IN THE FOLLOWING INSTANCEA) TRANSFER OF MOTOR VEHICLE VALUED AT P!'%''' B) THE TRANSFER IS EXEMPT FROM TAX% THE GROSS VALUE OF THE ESTATE IS P3''%''' C) THE NET ESTATE IS WORTH P2#'%''' D) DONATION OF CASH WORTH P#%'''

123.STATEMENT 1$THE ESTATE TAX RETURN SHOULD BE FILED WITH THE AUTHORI ED AGENT BANK% RDO% COLLECTION AGENT% OR DULY AUTHORI ED TREASURER OF THE MUNICIPALITY IN WHICH THE DECEDENT WAS DOMICILED AT THE TIME OF DEATH STATEMENT 2$ IF THE DECEDENT WAS A NON-RESIDENT% NOT A CITI EN OF THE PHILIPPINES% THE ESTATE TAX RETURN MAY BE FILED WITH THE CIR A) B) C) D) BOTH STATEMENTS ARE TRUE BOTH STATEMENTS ARE FALSE STATEMENT 1 IS TRUE- STATEMENT 2 IS FALSE STATEMENT 1 IS FALSE- STATEMENT 2 IS TRUE

12!. CASE 1- CARL FILED AN ESTATE TAX RETURN ON THE DATE PRESCRIBED BY LAW BUT PAID THE TAX DUE OF P!'%''' AFTER SAID DATE. CARL IS SUB(ECT TO THE PENALTY OF P1'%''' CASE 2$ IF CARL FILED THE RETURN AND PAID THE TAX OF P!'%''' WITH AN INTERNAL RDO OTHER THAN THOSE WITH WHOM AN THE RETURN IS RE0UIRED TO BE FILED AFTER THE PRESCRIBED DATE% CARL IS SUB(ECT TO THE PENALTY OF P3'%''' A) B) C) D) CASE 1 PENALTY IS CORRECT- CASE 2 PENALTY IS WRONG CASE 1 PENA-LTY IS WRONG- CASE 2 PENALTY IS CORRECT PENALTIES IMPOSED ON BOTH CASES ARE CORRECT PENALTIES ON BOTH CASES ARE WRONG

12#. ON SEPTEMBER 21% 2''#% THE MANAGER OF PNB UPON READING THE OBITUARY ANNOUNCING THE DEATH OF MR. A% REFUSED TO ALLOW THE HEIRS OF THE DECEDENT TO WITHDRAW A"S DEPOSIT. A WEEK LATER% IMMEDIATELY AFTER SAID DENIAL% THE HEIRS SUED PNB AND ITS MANAGER TO COMPEL THEM TO RELEASE THE MONEY ALLEGING THAT SUCH ACT WAS ARBITRARY AND A DENIAL OF THEIR PROPERTY"S CONSTITUTIONAL RIGHTS. WHICH OF THE FOLLOWINGS IS NOT CORRECT? A) THE BANK SHOULD ALLOW WITHDRAWAL FROM A"S DEPOSIT ACCOUNT ONLY UPON PRESENTATION THAT THE ESTATE TAX HAD BEEN PAID B) THE CASE BROUGHT BY THE HEIRS AGAINST THE BANK WILL NOT PROSPER IN COURT SINCE COURTS HAVE NO (URISDICTION OVER THE CASE. THE PROPER REMEDY SHOULD BE AN ADMINISTRATIVE APPEAL WITH THE CIR

C) EVEN IF THE ESTATE TAX HAVE NOT BEEN PAID YET% THE CIR MAY AUTHORI E THE BANK TO ALLOW WITHDRAWAL OF AN AMOUNT NOT EXCEEDING P1''%''' BY THE HEIRS OF A D) THE MANAGER OF PNB IS RIGHT IN REFUSING TO ALLOW THE HEIRS TO WITHDRAW THE DECEDENT"S DEPOSIT BECAUSE HE HAS PRIOR KNOWLEDGE OF THE DEATH OF A 12&. THE CIR MAY EXTEND THE TIME FOR THE PAYMENT OF ESTATE TAX IN CASE THE ESTATE IS SETTLED(UDICIALLY A) 2 YRS B) 3 YRS C) # YRS D) ! YRS EXTRA-(UDICIALLY # YRS 1 YR 2 YRS 2 YRS

12*. MASARU DIED ON FEBRUARY !% 2''+. THE EXECUTOR OF THE ESTATE FILED AN ESTATE TAX RETURN ON (UNE 23% 2''#. WITHIN THE PERIOD FOR PAYMENT% THE EXECUTOR RE0UESTED FOR AN EXTENSION OF TIME FOR PAYING THE TAX. ASSUMING THAT THE TAX PAYABLE IN THE RETURN IS P2'%''' AND THE CIR GRANTED THE RE0UEST BUT RE0UIRED THAT THE TAX SHOULD BE PAID ON OR BEFORE AUGUST 2!% 2''*% THE ESTATE TAX PAYABLE ON AUGUST 2!% 2''* ISA) B) C) D) P2'%''' P2)%''' P32%''' P2+%'''

12). WHICH OF THE FOLLOWING IS NOT TRUE? A) THE ESTATE TAX SHOULD BE PAID BEFORE DELIVERY OF THE DISTRIBUTIVE SHARE IN THE INHERITANCE TO ANY HEIR OR BENEFICIARY B) WHEN THERE ARE TWO EXECUTORS% BOTH OF THEM ARE SEVERALLY LIABLE FOR THE PAYMENT OF THE ESTATE TAX C) THE HEIR OR BENEFICIARY HAS THE PRIMARY OBLIGATION TO PAY THE ESTATE TAX D) THE LIABILITY OF THE HEIR IN THE PAYMENT OF THE TAX SHALL IN NO CASE EXCEED THE VALUE OF HIS SHARE IN THE INHERITANCE

12+. A NOTICE OF DEATH AND A CPA CERTIFICATE% RESPECTIVELY% ARE RE0UIRED IF THE VALUE OF THE ESTATE EXCEEDSNOTICE A) P2'%''' B) 2'%''' C) 2''%''' D) 2%'''%''' CERTIFICATE 2%'''%''' 2''%''' 2%'''%''' 2'%'''

13'. IF RE0UIRED% NOTICE OF DEATH OF THE DECEDENT SHOULD BE GIVEN TO THE BIR WITHIN A) B) C) D) 2 MONTHS & MONTHS 2 YEARS # YEARS

131. MR. A% A RESIDENT CITI EN% DIED ON AUGUST 2% 2''&. WHEN IS THE DEADLINE FOR FILING NOTICE OF DEATH AS RE0UIRED BY THE TAX CODE? A) B) C) D) APRIL 1#% 2''* OCTOBER 2% 2''& NOVEMBER 2% 2''& FEBRAURY 2% 2''*

132. WHICH OF THE FOLLOWING STATEMENTS IS NOT RE0UIRED TO ACCOMPANY THE ESTATE TAX RETURN? A) B) C) D) ITEMI ED ASSETS WITH CORRESPONDING VALUE ITEMI ED DEDUCTION FRO GROSS ESTATE ESTATE TAX DUE AND PAYABLE ITEMI ED INCOME AND EXPENSES OF THE DECEDENT

D.TRUE OR FALSE 1. SUCCESSION TAKES PLACE UPON THE DEATH OF THE DECEDENT 2. UNPAID FUNERAL EXPENSES ARE NEVERTHELESS DEDUCTIBLE FROM GROSS ESTATE AS PART OF 3CLAIMS AGAINST THE ESTATE4. 3. ESTATE TAX IS A PROPERTY TAX !. DECEDENT"S INTEREST INCLUDES REVOCABLE INTER VIVOS TRANSFERS OF PROPERTIES UNTIL THE DEATH OF THE DONOR.

#.THE SHARE OF THE SURVIVING SPOUSE IN THE COMMUNITY PROPERTY IS NOT INCLUDED IN THE GROSS ESTATE OF THE DECEDENT PERSON. &.THE PROCEEDS OF LIFE INSURANCE POLICIES PAYABLE UPON THE DEATH OF THE DECEDENT ARE EXEMPT FROM THE PAYMENT OF THE ESTATE TAX. *.IF THE DECEDENT SELLS PROPERTIES BECAUSE OF AN IMPENDING DEATH% THE DIFFERENCE BETWEEN THE MARKET VALUES AT THE TIME OF SALE AND AT THE TIME OF DEATH% IF ANY% IS SUB(ECT TO ESTATE TAX. ).IF THERE IS RECIPROCITY% THE INTANGIBLE PERSONAL PROPERTY IN THE PHILIPPINES OF THE NON-RESIDENT ALIEN IS SUB(ECT TO ESTATE TAX IN THE PHILIPPINES. +. A POWER OF APPOINTMENT IS GENERAL IF THE DONEE IS AUTHORI ED TO APPOINT A BENEFICIARY NAMED IN THE WILL OF THE PRIOR DECEDENT. 1'.A HUSBAND CAN NOT DONATE HIS SHARE IN THE COMMUNITY PROPERTY TO HIS SURVIVING SPOUSE. 11.WINNINGS IN GAMBLING IS CON(UGAL PROPERTY% HOWEVER% LOSSES THEREON SHALL BE BORNE EXCLUSIVELY BY THE LOSER-SPOUSE. 12. DONATIONS TO CHARITABLE INSTITUTIONS ARE DEDUCTIONS FROM GROSS ESTATE. 13. DEATH BENEFIT FROM GSIS IS EXEMPT FROM ESTATE TAX. 1!.THE COST OF THE MOURNING CLOTHINGS OF A SPINSTER DAUGHTER OF THE DECEASED IS DEDUCTIBLE AS FUNERAL EXPENSE. 1#.UNPAID ACCOUNTANT"S FEES TO AN ACCOIUNTANT WHO SIGNED THE CPA CERTIFICATE IS DEDUCTIBLE AS 3 CLAIM AGAINST THE ESTATE4. 1&. AN UNPAID LOAN CONTRACTED BY THE DECEDENT SPOUSE WHICH IS SECURED BY A MORTGAGE OF A COMMUNTITY PROPERTY IS DEDUCTIBLE AS A CLAIM AGAINST THE ESTATE AND NOT AS UNPAID MORTGAGE. 1*. IN AN ACCOMODATION LOAN% THERE IS AN ADDITION TO AND A DEDUCTION FROM GROSS ESTATE % THUS RESULTING TOA ERO BALANCE IN THE NET ESTATE.

1). CASUALTY LOSSES ARE DEDUCTIBLE FROM GROSS ESTATE AND FROM GROSS INCOME. 1+. THE FAMILY HOME OF A NON-RESIDENT CITI EN IS INCLUDIBLE IN THE GROSS ESTATE BUT NOT DEDUCTIBLE THEREFROM. 2'. THE ESTATE OF A NON-RESIDENT ALIEN IS NOT ENTITLED TO A VANISHING DEDUCTION. 21. NET TAXABLE ESTATE IS ANOTHER TERM FOR NET DISTRIBUTABLE ESTATE. 22. ONLY THE ESTATE OF RESIDENT CITI EN CAN CLAIM TAX CREDIT ON ESTATE TAXES PAID TO FOREIGN COUNTRIES. 23.NOTICE OF DEATH SHOULD BE MADE WITHIN 3' DAYS AFTER THE DEATH OF THE DECEDENT. 2!.FILING OF ESTATE TAX RETURN IS RE0UIRED IF THE TRANSFER IS SUB(ECT TO ESTATE TAX REGARDLESS OF THE VALUE OF THE GROSS ESTATE. 2#. INSTALLMENT PAYMENT OF ESTATE TAX MAYBE ALLOWED IF THERE ARE NO AVAILABLE CASH OF THER ESTATE.