Chapter 15 – Estate Tax Payable

Multiple Choice – Theory

1. The taxable estate of the following includes all properties
wherever situated, except
a. resident citizen
b. non-resident alien
c. resident alien
d. non-resident alien
2. Which of the following is normally deductible against common
properties?
a. medical expenses
b. standard deductions
c. funeral expenses
d. vanishing deductions
3. Which is not considered in the computation of the share of the
surviving spouse?
a. medical expenses
b. family home
c. obligations
d. standard deductions
4. Which is included in the net taxable estate?
a. family home in excess of 1,000,000
b. separate property of the surviving spouse
c. medical expenses
d. share of the surviving spouse
5. Which is included in the computation of the net taxable estate
and in the computation of the net distributable estate?
a. share of the surviving spouse
b. vanishing deductions
c. estate tax
d. family home
6. Which is included in net taxable estate?
a. excess funeral expense above deductible amounts
b. losses of properties occurring within 6 months after death
c. losses of properties occurring before death
d. claims against the estate
7. Statement 1: No estate tax is due on an estate with only
P1,000,000 worth of properties.
Statement 2: An estate with a net estate P200,000 will not pay
estate tax.
Which is correct?
a. statement 1
b. statement 2
 c. both statements
d. neither statement
8. Statement 1: An estate with a net taxable estate of P200,000 is
not required to file an estate tax return.
Statement 2: The BIR shall be notified of the death of the
decedent if he has a net estate of P20,000.
Which is incorrect?
a. statement 1
b. statement 2
c. both statements
d. neither statement
9. Which of these is required to file an estate tax return?
a. an estate consisting solely of P100,000 shares of stocks
b. an estate which includes a motor vehicle worth P200,0000
c. an estate with a real property worth P1,000,000
d. all of these
10. Which decedent cannot claim deduction for tax credit?
a. resident citizen
b. non resident citizen
c. resident alien
d. non resident alien
11. Which is correct regarding the share of the surviving
spouse?
a. one half of the gross estate after ordinary deductions
b. one half of the common properties plus the separate
properties of the surviving spouse
c. one half of the net common properties
d. the whole of the separate property of the surviving spouse
12. Who is directly liable to pay the estate tax?
a. the decedent
b. the heirs
c. the estate administrator or executor
d. the surviving spouse
13. A CPA Certification is required if the gross estate
a. exceeds P20,000
b. exceeds P200,000
c. exceeds P2,000,000
d. contains registrable properties without regard to the value
of the estate
14. A decedent died with a gross estate of P4,000,000. Which
of the following is required?
a. notice of death
b. estate tax return
c. CPA certification
d. all of these
 15. The notice of death shall be filed within
a. 2 months before the date of death
b. 2 months from the date of death
c. 30 days from the date of death
d. 6 months from the date of death
16. The estate tax return shall be filed within
a. 30 days from the date of death
b. 2 months from the date of death
c. 6 months from the date of death
d. 2 years from the date of death
17. What is the maximum extension allowable in filing of the
estate tax return?
a. 5 years
b. 2 years
c. 2 months
d. 30 days
18. What is the maximum period of extension in paying the
estate tax for estate under extra judicial settlement?
a. 5 years
b. 2 years
c. 6 months
d. 30 days
19. What is the maximum period of extension in paying the
estate tax under judicial settlement?
a. 5 years
b. 2 years
c. 6 months
d. 30 days
20. The estate tax return of a non resident alien decedent is
filed with
a. an accredited agent bank
b. revenue district office
c. collection agent
d. office of the commissioner

Multiple Choice – Problems Part 1

1. A single decedent died with the following data regarding his
estate:
Family home 800,000
Agricultural land 2,500,000
Cash and other personal properties 1,200,000
Total 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 8,000,000
Less: ordinary deductions 2,400,000
Total 5,600,000
Compute for the net taxable estate:
a. 5600000
b. 4600000
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 250,000
Judicial expenses 150,000
Claims against the estate 600,000
Losses 200,000
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 1,000,000
Separate properties of Mrs. Y 2,400,000
Communal properties 2,600,000

Funeral expenses 100,000

Other ordinary deductions to communal 800,000
properties
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 2,400,000
Common properties of the spouses 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 4,500,000
Intangible properties in PH 500,000
Tangible properties abroad 5,000,000
Total gross estate 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 3,000,000
Separate properties of decedent 1,800,000
Common properties 3,200,000

Total foreign properties, excluding P5,00,000 10,000,000

separate properties of surviving spouse

Possible deductions
Funeral expenses 180,000
Judicial expenses 120,000
Medical expense 500,000
Obligations – common fund 900,000
Family home – common property 1,200,000
What is the taxable net estate?
a. 3200000
b. 2800000
c. 2000000
d. 0
6. The following properties pertains to the estate of Mr. Servano, a
widower:
Cash 500,000
Investment in stocks 1,500,000
Car 2,000,000
Agricultural land 5,000,000
 Family home 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 Japan Total
Gross estate 5,000,000 3,000,000 8,000,000
Ordinary 1,600,000 1,200,000 2,800,000
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:
Philippines China Taiwan Total
Family home 1,800,000 1,800,000
Other properties 7,200,00 3,000,000 4,000,000 14,200,00
0
 Total estate 9,000,000 3,000,000 4,000,000 16,000,00
0

Funeral expense 250,000 70,000 320,000

Judicial expense 300,000 150,000 100,000 550,000
Obligations 2,250,000 800,000 1,200,000 4,250,000
Total 2,800,000 1,020,000 1,300,000 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 2,500,000
deduction
Net estate abroad, before standard deduction 3,500,000
Net estate, world before standard deduction 6,000,000
Compute the estate tax.
a. 615000
b. 585000
c. 465000
d. 190000
2. 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
3. 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
4. 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
5. 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 Estate tax paid
Net estate in PH 2,000,000
Net estate in Taiwan 2,500,000 240,000
 Net estate in Singapore 1,500,000 200,000
Net estate in Indonesia 3,000,000 300,000
Total net estate 9,000,000 740,000
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 2,100,000
Business interest 3,000,000
Commercial building 4,000,000
Family home, inclusive of P2,000,000 lot 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. 7100000
b. 7000000
c. 3850000
d. 3750000
10. The following related to the estate of a single decedent:
Receivables representing proceeds of life 1,000,000
insurance irrevocably designated to a brother
Motor vehicles 400,000
Investment in bonds 600,000
Stock investments 300,000
Land 4,000,000

Funeral expenses (1/2 paid by friends) 300,000

Loss – motor vehicle 400,000
Obligations (1/4 accruing after death) 800,000
Compute the net taxable estate.
a. 4150000
b. 3950000
c. 3150000
d. 3550000