BUSINESS AND TRANSFER TAXATION 5th Edition (BY: VALENCIA & ROXAS)SUGGESTED ANSWERS Ch !

t"# $: GROSS ESTATE 8 C%A&TER $ GROSS ESTATE Problem 3-1 1. False should be including revocable transfers and transfers for insufficient consideration.2. False depending on the citizenship and residency of the decedent.3. True4. False common stoc only! preferred stoc is measured at its par value.". False resident alien # properties $ithin and $ithout%. True&. True8. False donation mortis causa is sub'ect to estate ta(.). True1*. False only revocable transfer is ta(able. Problem 3-2 1. False the relationship must be one degree of generation.2. True +f he is a nonresident alien.3. False the other $ay around4. True".

False it $ill depend on ho$ the 'e$elry $as ac,uired.%. True&. False revocable designation.8. True). False e(clusively to $ife1*. False surviving spouse capital is not included. Problem 3-3 1. - %. .2. . &. /3. - 8. .4. / ). -". 0 1*. 01 - 2 / Problem 3-4 1. The reportable gross estate is 321***1***.2. 4eportable gross estate is 3%**1***. .s a rule1 property donated by the decedent to a nonprofit andnonstoc educational institution shall not be considered in the computation of gross estate.3. The reportable estate of . in the 3hilippines is 3"1***1***. 5ven if . is a nonresident Filipino1 hisproperties located outside the 3hilippines are reportable in the 3hilippines because he is a Filipinocitizen.4. 31*1***1***. The properties left by a resident alien $hich are located $ithin and outside the3hilippines are re,uired to be reported for 3hilippine estate ta( purposes.". .t mar et value of 3&"*1***. The la$ provides that the valuation should be at the mar et value of the property at the time of the o$ner6s death. The boo value is irrelevant because the properties left by the decedent are considered under li,uidating concern