1.

Estate tax is imposed on:

a. The death of the decedent
b. The making of the will of a decedent
C.
C. The transfer of properties by the decedent to the heirs, legatees, or
devisees.
d. The duration of the life of the decedent

2. Ee Cao died single on January 1, 2018. At this point, due to the mourning
of his relatives, no inventory of the estate was made. Two months after,
out that at this
an inventory of the estate was made, and it was found
From January 1 up
point, the value of the estate amounted to P2,430,000.
to the date of inventory, the estate earned income of P367,000, and spent
for family support. How
P442,000 for funeral expenses and P180,000
much should be declared as gross estate?
a. 2,175,000
b. 2,430,000
c. 2,505,000
d. 2,685,000

3. When does estate tax accrue?

a. Upon the death of the taxpayer
the settlement of the
estate
b. Upon
court declaring the final distribution of the estate
C.
c. Upon order of the
of the decedent
the date of the death of the taxpayver
d. After one year from

the itemized assets and liabilities of the

4. A CPA certification containing
estate is required if:
estate exceeds
P500,000.
a. The gross
exceeds P5,000,000.
b. The gross estate
C.
C. The gross estate exceeds P200,000.
estate exceeds P2,000,000.
d. The gross
 5. A legatee:
a. Is a person named by the decedent to carry out the provisions of
his
will.
b. Is a person to whom gifts of personal property were
given by the
deceased owner.
Is a person to whom gifts of real
C.
property
were the given by deceased
owner.

d. Is a person appointed by the court to manage the property in the

estate.

6 Revocable transfers inter vivos are:

a. Subject to donor's tax if not revoked and the transferor dies.
b. Subject to donor's tax if the transferor revoked the
transfer before he
dies.
C. Subject to estate tax if not revoked and the transferor dies.
d. Subject to estate tax if the transferor waives his right of revocation
before he dies.

7.
7. Which of the following is/are transmitted by way of succession?
I. Transmissible rights
II Transmissible properties
III Obligations of the decedent in their full amount

a. II only.
b. I and II only.
C. II and III only.
d. I, I1, and III.

8. Statement 1: If the estate is being judicially settled, the Commissioner

may grant an extension of payment of estate tax not exceeding two years.
Statement 2: In no case will an estate exempt to estate tax be required to
file an estate tax return.
a. Only Statement 1 is true.
b. Only Statement 2 is true.
C. Both statements are true.
d. Both statements are not true.
9. Andeng
died, leaving listed shares of stock as
part of his estate. How
should these properties be valued?
a.
a. Book value on the date of death
b. Quotation on the date of death
c.
C. Par value on the date of death
d. Based on a computation in accordance
with the Adjusted Net Asset
Method

10. Reciprocity primarily affects the taxability of

a.
Tangible personal property located without the Philippines.
b. Tangible personal
property located within the Philippines.
C.
Intangible personal property located without the Philippines.
d. Intangible
personal property located within the Philippines.
11. The estate tax return must be
filed, and the estate tax must be paid:
a. Within 30 days after the death of the decedent.
b. Within 6 months after the death of the decedent.
C. Within 1 year after the death of the decedent.
d. On or before
April 15 of the year following the death of the decedent.
12. If donation is intended
a to take effect upon the death of a
person, such
donation is subject to:
a. Donor's tax
b. Estate tax
C. Donor's tax or estate tax, at the option of the
d. Both donor's tax and estate tax.
taxpayer

13. Statement 1: Death extinguishes the obligations and debts of a deceased

person.
Statement 2: All rights which a person has upon his death will
be
transmitted to his heirs upon his death.
a.
Only Statement 1 is true.
b. Only Statement 2 is true.
C. Both statements are true.
d. Both statements are not true.

14.
Statement 1: The gross estate of non-resident alien who has the
a
of
reciprocity shall not benefit
include personal
properties located in the
Philippines.
 of a resident alien shall not include
estate
Statement 2: The gross
located outside
the Philippines.
personal properties
1 is true.
a. Only Statement
2 is true.
b. Only Statement
are true.
C.
c. Both statements
true.
d.
d. Both statements are not

following statements is true with respect to foreclosed

15. Which of the
property?
do not form part ot the gross estate of a
a. Foreclosed properties
deceased borrower.
b. Foreclosed properties still form part of the gross estate of a deceased
b.
borrower until the redemption period has expired.
Foreclosed properties still form part of the groSs estate of a deceased
C
borrower until the foreclosure sale has been confirmed by the court.
d. Foreclosed properties form part of the gross estate of a deceased
borrower under any and all circumstances.

16. All of the following are inclusions in the gross estate of a decedent,
except:
a. Transfers under a special power of aPpointment
b. Revocable transfers, in general
C. Transfers in contemplation of death
d. Donations mortis causa

17. What is the rule in relation to claims against insolvernt personsS

a. The amount that is collectible must be included in the gross estate or

the decedent, and the amount that is uncollectible may be claimed as

a deduction from gross estate.

b. The amount that is collectible need not be included in the gross estare
of the decedent, and the amount that is uncollectible may be claime
as a deduction from gross estate.
C.The full amount of the receivable must be inclluded in the gross esttate
imed
of the be
decedent, and the amount that is uncollectible may clau
as a deduction from gross estate.
gross
aThe full amount of the receivable need not be included in tne 8
the decedent, and the amount that is uncollectible niay
dte or
claimed as a deduction from gross estate.
 18 Which of the following should be included in the
gross estate?
I Conjugal or community property, in its full amount
II. Exclusive property of the decedent, in its full amount
III. Exclusive property of the surviving spouse, in its full amount
a. II only.
b. I and II only.
c. II and III only.
d. LII and III.

19. Bobby died on April 1, 2021. In his will, he gave the right to the use and
fruits of the property to Cassie, but the title should be
the name of Dennis. Which of the
registered under
following is exempt from estate tax?
a. Transfer of Bobby to both Cassie and Dennis
b. Trarnsfer of Cassie of the right to the use and fruits to Dennis
c. Transfer of Dennis of the registered title to Cassie
d. Transfer of Dennis of the
registered title to his own heirs
20. Which of the following bequests and devises are
exempt?
I Bequests and devises to social welfare institutions
II Bequests and devises to religious institutions
II. Bequests and devises to cultural institutions

a. I and II only.
b. I and IlI only.
C. II and III only.
d. 1,L, and III.

21. A decedent died with an unpaid liability of P2,000,000. A week after his
death, the debt fell due. The creditor called the decedent's phone, the
decedent's son picked up, and informed the creditor that the decedent
has died. The creditor lashed out, saying that that is not a valid excuse
to
not pay the debt. The decedent's son settled one-fourth of
the debt, an
amount of P500,000, within two hours. The remainder is
unpaid. What is
the effect of the payment of P500,000 to the claimable
deduction of the
estate for estate tax purposes?
a. No effect.
b. The P500,000 payment reduces the amount of claimable deduction.
 C. The entire P2,000,000 will no longer be considered as claimable.
d. The P500,000 payment shall be removed from the gross estate of the
decedent.

22. Bill died on September 24, 2020. The following were losses incurred:

Date
incurred Particulars Amount
22-Sep 2020 Payments of hospitalization expense P 24,000
23-Sep 2020 Loss on fire of property in Laguna 55,000
28-Sep 2020 Loss of cash from theft
102,000
10-Nov 2020 Insured loss from flood
245,000
Loss from inventory spoilage to be
claimed as deduction on the
5-Jan 2021 income tax return of the estate
52,000
22-Oct 2021 Uninsured loss from bomb
explosion 38,200
P 516,200
How much may be claimed as deduction against the gross estate?
a. 102,000
b. 126,000
C. 140,200
d. 157,000

23. The limit for

family home deduction is currently set at:
a. P1,000,000
b. P2,000,000
C. P5,000,000
d. P10,000,000
24, Erika, Finny, and Gary all died in a car accident on their way to Tagaytay.
Both of them own their respective homes. Erika and Finny are both single.
Erika is living alone, while Finny is the head of her family, where she took
her younger siblings as dependents. Gary, on the other hand, is married,
but he and his wife have no children yet. In whose estate can a family
home deduction be claimed?
a. Finny only
b. Gary only.
C. Finny and Gary only.
d. Erika, Finny, and Gary

25. Under which of the following instances can vanishing deduction be

claimed?
I. A succession which was preceded by a donation when both
events happened within five years.
II. A donation which was preceded by a succession when both
events happened within five years.
III. A succession which was preceded by another succession when
both events happened within five years.

a.
a. III only.
b. I and III only.
C. II and III only.
d. I, II, and III.

26. In the absence of any agreement, the default property regime is:
a.
a. Absolute community of property
b. Conjugal partnership of gains
C. Complete separation of property
d. Ang sa'yo ay akin at ang akin ay akin pa rin regime

27. An estate under judicial settlement may ask for an

extension to file its
estate tax return for a period not exceeding:
a. 30 days
b. 6 months
C. 2 years
d. 5 years
 28. Which of the following decedent is only taxable for his estate located
within Philippine territory?
a. Resident citizen
b. Nonresident citizen
C. Resident alien
d. Nonresident alien

29. A resident citizen died leaving a cash in bank in a local domestic

bank
with face value of P1,000,000 and other
properties. If the heirs will
withdraw the said cash in bank, what is the final tax to be withheld
by
the local domestic bank if the heirs would like to withdraw the
total
amount of cash in bank?
a. P60,000
b. P120,0000
C. P100,000
d. P5,000

30. Which of the following transfers is subject to estate tax?

a. Transfer passing under general power of
b.
appointment
of
Merger usufruct to the owner of naked title
C. Transfer of property from fiduciary heir to
d.
fideicommissary heir
Irrevocable donation inter vivos

31. What is the period for filing of estate tax return?

a. Within 30 days from the decedent's death
b. Within 2 months from the decedent's death
C. Within 6 months from the decedent's death
d. Within 1 year from the decedent's death