!

" # $

1. T 6. F 11. F 1. F 6. T
2. T 7. F 12. F 2. T 7. F
3. T 8. T 13. F 3. T 8. T
4. F 9. F 14. T 4. T 9. F
5. T 10. T 15. T 5. T 10. T

1. D 6. A 1. C 6. A 1. B 6. A
2. A, B, D 7. D 2. A 7. B 2. B 7. D
3. C 8. B 3. D 8. D 3. D 8. B
4. C 9. C 4. C 9. B 4. C 9. B
5. B 10. A 5. B 10. B 5. B 10. C

1. T 6. F 1. F 6. T 1. A 6. B 1. C 6. B
2. T 7. T 2. T 7. T 2. C 7. D 2. D 7. B
3. T 8. T 3. T 8. T 3. D 8. A 3. A 8. A
4. T 9. T 4. T 9. T 4. B 9. C 4. B 9. C
5. F 10. T 5. T 10. F 5. D 10. A 5. C 10. D

1. A 6. B 11. C 16. B 1. A 6. C 11. C 16. B

2. A 7. B 12. C 17. C 2. A 7. A 12. C 17. C
3. C 8. C 13. C 18. A 3. C 8. C 13. C 18. A
4. A 9. B 14. C 19. C 4. C 9. B 14. C 19. C
5. A 10. B 15. C 20. C 5. A 10. B 15. C 20. C
21. C 21. A
22. B
23. A

1. A 6. A A. 0 A. P900,000
2. B 7. C B. P750,000 B. P400,000
3. B 8. D C. P1.25M C. 0
4. D 9. A
5. C 10. C

1. Proceeds shall form part of the gross estate because the beneficiary is the estate. This is regardless of whether the designation is revocable or
irrevocable.
2. Proceeds shall form part of the gross estate because the beneficiary is the administrator of the estate. This is regardless of whether the
designation is revocable or irrevocable.
3. Proceeds shall form part of the gross estate. Since the designation of the beneficiary is silent as to its revocability, it is presumed by law to be
revocable.
4. Proceeds shall form part of the gross estate because the designation of the beneficiary is revocable.
5. Proceeds shall not form part of the gross estate because the designation of the beneficiary is irrevocable.

1. A 1. P3M 1. within 6. within 11. without 16. without 21. within 26. within
2. B 2. P1.4M 2. within 7. without 12. within 17. within 22. within 27. within
3. D 3. P272,000 3. within 8. within 13. within 18. within 23. within 28. without
4. A 4. P80,000 4. within 9. without 14. without 19. within 24. without 29. within
5. B 5. P550,000* 5. without 10. within 15. without 20. without 25. without
6. D
* Paid-in capital (P4 x 800,000 shs) P3,200,000
Retained earnings 1,200,000
Stockholders equity P4,400,000
Divide by outstanding shares 800,000
Book value per share P 5.50
Multiply by shares held 100,000
Value to include in gross estate P 550,000

1
a, b, and c. Gross estate = P31.2M (All items are added.)
d. Gross estate = P10.025M (Consider items 4, 5, 7, 8, 9, 18, 19, 20 and 23.)
e. Gross estate = P16.7M (Consider items 2, 4, 5, 7, 8, 9, 11, 14, 16, 17, 18, 19, 20, 21, 22 and 23.)

a, b, and c. Gross estate = P31.025M (All items are added.)

d. Gross estate = P8.525M (Consider items 2, 3, 6, 7, 9, 10, 11, 19 and 21.)
e. Gross estate = P18.725M (Consider items 2, 3, 6, 7, 8, 9, 10, 11, 13, 16, 18, 19, 20 and 21.)

a, b, and c. Gross estate = P26,987,500 (All items are added.)

d. Gross estate = P7.65M (Consider items 3, 4, 5, 6, 8, 11 and 15.)
e. Gross estate = P13.975M (Consider items 1, 3, 4, 5, 6, 8, 11, 13, 15, 16, 20, 21, 22, 23, 26, 28 and 29.)

&

1. T 6. T 11. F 1. T 6. T
2. F 7. T 12. F 2. T 7. F
3. T 8. F 13. T 3. F 8. T
4. T 9. T 14. F 4. F 9. T
5. F 10. T 15. F 5. T 10. F

! "
1. B 6. D 1. A 6. A 1. P50,000 Answer: P78,800*
2. B 7. C 2. D 7. D 2. P100,000
3. B 8. A 3. A 8. B 3. P175,000
4. D 9. D 4. D 9. A 4. P175,000
5. A 10. D 5. D 10. C 5. P200,000
* Embalming charges P 2,000
Burial apparel of the decedent 2,200
Cost of coffin 15,000
Mourning apparel during burial of the surviving
spouse 1,500
Mourning apparel one unmarried minor child 1,000
Snacks and drinks during the wake 1,500
Honoraria of priest for daily mass for three days;
P500 a day 1,500
Telecommunication charges to inform relatives in
the provinces 200
Charges for death notice published in a newspaper 700
Cost of video footage of the burial and interment 2,100
Funeral car service during interment 400
Honorarium of priest who celebrated the mass
during interment 700
Cost of tombstone 50,000
Total P78,800

Actual funeral expenses (as computed) P 78,800

5% x P1,800,000 90,000
Maximum limit 200,000
Deduction allowed P78,800

1. A 6. C 11. D 16. B 21. A 26. C

2. B 7. C 12. C 17. A 22. D 27. D
3. C 8. A 13. D 18. B 23. C 28. A
4. C 9. B 14. C 19. B 24. B 29. D
5. B 10. C 15. D 20. D 25. B 30. C

31. B 36. B 41. B 46. C

32. A 37. C 42. C 47. C
33. C 38. C 43. B 48. C
34. A 39. C 44. D 49. A
35. C 40. B 45. C 50. A

2
 ! "

Real and personal properties P3,500,000 Real and personal properties P4,250,000
Family Home 1,750,000 Family Home 1,500,000
Gross Estate P5,250,000 Gross Estate P5,750,000
Less: Deductions Less: Deductions
Ordinary Deductions Ordinary Deductions
Funeral Expenses P 200,000 Funeral Expenses P 200,000
Other Deductions 1,250,000 P1,450,000 Other Deductions 950,000 P1,150,000
Special Deductions Special Deductions
Family Home P1,000,000 Family Home P1,000,000
Standard Deduction 1,000,000 Standard Deduction 1,000,000
Medical Expenses 350,000 2,350,000 Medical Expenses 500,000 2,500,000
Total Deductions P3,800,000 Total Deductions P3,650,000
Net Taxable Estate P1,450,000 Net Taxable Estate P2,100,000

# $

Real and personal properties P3,750,000 Real and personal properties P2,800,000
Family Home 900,000 Family Home 750,000
Gross Estate P4,650,000 Gross Estate P3,550,000
Less: Deductions Less: Deductions
Ordinary Deductions Ordinary Deductions
Funeral Expenses P 200,000 Funeral Expenses P 177,500
Other Deductions 1,200,000 P1,400,000 Other Deductions 1,050,000 P1,227,500
Special Deductions Special Deductions
Family Home P 900,000 Family Home P 750,000
Standard Deduction 1,000,000 Standard Deduction 1,000,000
Medical Expenses 200,000 2,100,000 Medical Expenses 400,000 2,150,000
Total Deductions P3,500,000 Total Deductions P3,377,500
Net Taxable Estate P1,150,000 Net Taxable Estate P 172,500

1. exempt 6. P59,000 11. P990,000

2. P2,500 7. P99,000 12. P1,315,000
3. P7,500 8. P190,000 13. P1,915,000
4. P12,500 9. P410,000 14. P4,215,000
5. P19,000 10. P690,000 15. P5,215,000

'
!
Gross estate
Parcel of land in California, U.S.A. P2,500,000
House and lot in Quezon City (family
home) 2,250,000
Shares of stock in a foreign corporation
with office in California, U.S.A. 1,125,000
Car in California, U.S.A. 312,500
Bank deposit 125,000
Claim against an insolvent person 62,500 P6,375,000
Less: Deductions
Funeral expenses
Actual P312,500
5% x P6,375,000 318,750
Maximum limit 200,000
Allowed P 200,000

3
 Medical expenses (maximum limit) 500,000
Judicial expenses 43,750
Claims against the estate 90,625
Claims against an insolvent person 62,500
Family home 1,000,000
Standard deduction 1,000,000 2,896,875
Net taxable estate P3,478,125

Estate tax
On P2,000,000 P135,000.00
1,478,125 x 11% 162,593.75
P3,478,125 P297,594.00

"
Gross estate
Fishpond in General Santos City P2,500,000
Lot in Las Pinas City 625,000
House and lot in San Juan, Metro Manila
(family home) 593,750
Honda car 375,000
Farm in Nueva Ecija donated
to sister 262,500
Time deposit 150,000 P4,506,250
Less: Deductions
Mortgage on fishpond P 25,000
Medical expenses incurred in 2012 287,500
Unpaid real estate tax for the 4th quarter
of 2012 20,000
Family home 593,750
Standard deduction 1,000,000 1,926,250
Net taxable estate P2,580,000

Estate tax
On P2,000,000 P135,000
580,000 x 11% 63,800
P2,580,000 P198,800

#
Gross estate
Farm, Camarines Sur P4,375,000
Bank deposit 2,125,000
House and lot in Guadalupe, Makati City
(family home) 1,875,000
Investment in a domestic partnership 1,500,000 P9,875,000
Less: Deductions
Funeral expenses
Actual P293,750
5% x P9,875,000 493,750
Maximum limit 200,000
Allowed P 200,000
Medical expenses 237,500
Standard deduction 1,000,000
Family home 1,000,000 2,437,500
Net taxable estate P7,437,500

Estate tax
On P5,000,000 P465,000
2,437,500 x 15% 365,625
P7,437,500 P830,625

4
 $
1. Gross estate
Cash in bank, Makati City P1,200,000
Investment in a domestic partnership 1,000,000
Car 700,000
Foreign shares 700,000
Domestic shares 500,000
Accounts receivable 100,000 P4,200,000
Less: Deductions
Funeral expenses
Actual P150,000
5% x P4,200,000 210,000
Maximum limit 200,000
Allowed P150,000
Judicial expenses 100,000
Claim against an insolvent person 100,000
Loss by robbery 3 months after death 200,000
Unpaid income tax for 2011 160,000
Legacy in favor of Philippine National
Red Cross 50,000
Legacy to City of Makati 100,000
Standard deduction 1,000,000 1,860,000
Net taxable estate P2,340,000

Estate tax
On P2,000,000 P135,000
340,000 x 11% 37,400
P2,340,000 P172,400

2. Gross estate
Cash in bank, Makati City P1,200,000
Investment in a domestic partnership 1,000,000
Car 700,000
Domestic shares 500,000 P3,400,000.00
Less: Deductions
Funeral expenses
Actual P150,000
5% x P3,400,000 170,000
Maximum limit 200,000
Allowed P150,000
Judicial expenses 100,000
Loss by robbery 3 months after death 200,000
Unpaid income tax for 2011 160,000
P610,000
P3,400,000
x P610,000 P493,809.52
P4,200,000
Legacy in favor of Philippine National
Red Cross 50,000.00
Legacy to City of Makati 100,000.00 643,809.52
Net taxable estate P2,756,190.48

Estate tax
On P2,000,000.00 P135,000.00
756,190.48 x 11% 83,180.95
P2,756,190.48 P218,181.00

5
 3. Gross estate-Car P700,000
Less: Deductions
Funeral expenses
Actual P150,000
5% x P700,000 35,000
Maximum limit 200,000
Allowed P 35,000
Judicial expenses 100,000
Loss by robbery 3 months after death 200,000
Unpaid income tax for 2011 160,000
P495,000
P 700,000
x P495,000 P 82,500
P4,200,000
Legacy in favor of Philippine National
Red Cross 50,000
Legacy to City of Makati 100,000 232,500
Net taxable estate P467,500

Estate tax
On P200,000 Exempt
267,500 x 5% P13,375
P467,500

1. T 6. T 1. B 6. D
2. F 7. T 2. A 7. B
3. T 8. F 3. A 8. D
4. T 9. F 4. D 9. C
5. F 10. F 5. C 10. C

!
Exclusive Conjugal Total
Conjugal Properties:
Apartment, 3 units 1,000,000
Bank deposit 700,000
Domestic shares 500,000
Car 400,000 2,600,000
Exclusive Properties:
Family home 1,250,000
Vacant lot 300,000 1,550,000
Gross Estate 1,550,000 2,600,000 4,150,000
(Less): Conjugal Deductions
Funeral expenses (90,000) (90,000)
Unpaid mortgage on apartment (300,000) (300,000)
Note payable (60,000) (60,000)
Exclusive Deductions
Legacy to Hospicio de San Jose (20,000) (20,000)
Net Estate After Deductions 1,530,000 2,150,000 3,680,000
(Less):
Share of surviving spouse (1,075,000) (1,075,000)
Family home (1,000,000) (1,000,000)
Standard deduction (1,000,000) (1,000,000)
Net Taxable Estate 530,000 75,000 605,000

Estate Tax Due

On 500,000 15,000
105,000 at 8% 8,400
605,000 23,400

6
"
Exclusive Conjugal Total
Conjugal Properties:
Family home 1,350,000
Tobacco plantation 2,000,000
Bank deposit, PDCP 650,000
Personal property 300,000
Notes receivable 200,000 4,500,000
Exclusive Properties:
Family vacation house, Tagaytay 800,000
Family lot 500,000 1,300,000
Gross Estate 1,300,000 4,500,000 5,800,000
(Less): Conjugal Deductions
Funeral expenses (80,000) (80,000)
Unpaid mortgage on plantation (200,000) (200,000)
Net Estate After Deductions 1,300,000 4,220,000 5,520,000
(Less):
Share of surviving spouse (2,110,000) (2,110,000)
Family home (325,000) (675,000) (1,000,000)
Standard deduction (1,000,000) (1,000,000)
Net Taxable Estate 975,000 435,000 1,410,000

Estate Tax Due

On 500,000 15,000
910,000 at 8% 72,800
1,410,000 87,800
#%!
Exclusive Conjugal Total
Conjugal Properties:
Personal property 1,300,000
Apartment and lot 1,000,000 2,300,000
Exclusive Properties:
Land 100,000
Jeep 20,000
San Miguel shares 300,000 420,000
Gross Estate 420,000 2,300,000 2,720,000
(Less): Conjugal Deductions
Funeral expenses (50,000) (50,000)
Unpaid mortgage on apartment & lot (70,000) (70,000)
Exclusive Deductions
Vanishing deduction (Sch.) (30,588) (30,588)
Net Estate After Deductions 389,412 2,180,000 2,569,412
(Less):
Share of surviving spouse (1,090,000) (1,090,000)
Standard deduction (1,000,000) (1,000,000)
Net Taxable Estate 389,412 90,000 479,412

Schedule of Vanishing Deduction

Value taken
Land 50,000
Jeep 20,000 70,000
Less: Mortgage paid 30,000
Initial basis 40,000

Less: 40,000 x 120,000 ** 1,765

2,720,000 *

7
 Final Basis 38,235
Multiply by rate 80%
Vanishing deduction 30,588

* Gross estate
** Funeral expenses, Unpaid mortgage, apartment & lot
#%"
Exclusive Conjugal Total
Gross Estate 420,000 2,300,000 2,720,000
(Less): Conjugal Deductions
Funeral expenses (50,000) (50,000)
Unpaid mortgage on apartment & lot (70,000) (70,000)
Exclusive Deductions
Unpaid mortgage on land (10,000) (10,000)
Vanishing deduction (Sch.) (38,088) (38,088)
Net Estate After Deductions 371,912 2,180,000 2,551,912
(Less):
Share of surviving spouse (1,090,000) (1,090,000)
Standard deduction (1,000,000) (1,000,000)
Net Taxable Estate 371,912 90,000 461,912

Schedule of Vanishing Deduction

Value taken
Land 50,000
Jeep 20,000 70,000
Less: Mortgage paid 20,000
Initial basis 50,000
Less: 50,000 x 130,000 ** 2,390
2,720,000 *
Final Basis 47,610
Multiply by rate 80%
Vanishing deduction 38,088

* Gross estate
** Funeral expenses; Unpaid mortgage, apartment & lot, land
$
Exclusive Conjugal Total
Conjugal Properties:
House and lot (Family Home) 1,500,000
Apartment 3,000,000
Personal property 400,000 4,900,000
Exclusive Properties:
Fishpond 500,000 500,000
Gross Estate 500,000 4,900,000 5,400,000
(Less): Conjugal Deductions
Funeral expenses (120,000) (120,000)
Unpaid mortgage on apartment & lot (500,000) (500,000)
Claims against the estate (80,000) (80,000)
Exclusive Deductions
Unpaid mortgage on land (20,000) (20,000)
Vanishing deduction (Sch.) (52,000) (52,000)
Net Estate After Deductions 428,000 4,200,000 4,628,000
(Less):
Share of surviving spouse (2,100,000) (2,100,000)
Family home (750,000) (750,000)
Standard deduction (1,000,000) (1,000,000)
Net Taxable Estate 428,000 350,000 778,000

8
 Estate Tax Due
On 500,000 15,000
278,000 at 8% 22,240
778,000 37,240
Schedule of Vanishing Deduction:

Value taken, Fishpond 140,000

Less: Mortgage paid 40,000
Initial basis 100,000

Less: 100,000 x 720,000 ** 13,333

5,400,000 *
Final Basis 86,667
Multiply by rate 60%
Vanishing deduction 52,000

* Gross estate
** Funeral expenses; Unpaid mortgage-apartment, fishpond; Claims against the estate

&
Conjugal Gross Estate
House and lot (Family Home) 1,500,000
Fishpond, Dagupan 1,200,000
Domestic shares of stock 300,000
Investment in a business partnership 250,000
Time deposit 1,600,000 4,850,000
(Less): Conjugal Deductions
Funeral expenses (192,500)
Unpaid mortgage on fishpond (350,000)
Medical expenses (500,000) (1,042,500)
Net Estate After Deductions 3,807,500
(Less):
Share of surviving spouse (1,903,750)
Family home (750,000)
Standard deduction (1,000,000) (3,653,750)
Net Taxable Estate 153,750

Estate Tax Due

On 153,750 Exempt
'
Exclusive Conjugal Total
Conjugal Properties:
House and lot (Family Home) 1,350,000
Azucarera, Tarlac 1,800,000
Investment in a domestic partnership 400,000
Personal property 160,000
Cash in bank 200,000 3,910,000
Exclusive Properties:
Apartment, QC 700,000 700,000
Gross Estate 700,000 3,910,000 4,610,000
(Less): Conjugal Deductions
Funeral expenses (130,000) (130,000)
Unpaid mortgage, azucarera (140,000) (140,000)
Income tax for 2011 (24,000) (24,000)
Medical expenses for 2012 (75,000) (75,000)
Exclusive Deductions
Mortgage on apartment (100,000) (100,000)

9
 Net Estate After Deductions 600,000 3,541,000 4,141,000
(Less):
Share of surviving spouse (1,770,500) (1,770,500)
Family home (675,000) (675,000)
Standard deduction (1,000,000) (1,000,000)
Net Taxable Estate 600,000 95,500 695,500

Estate Tax Due

On 500,000 15,000
195,500 at 8% 15,640
695,500 30,640
(
Exclusive Conjugal Total
Conjugal Properties:
Real Properties 4,500,000 4,500,000
Exclusive Properties:
Family Home 1,750,000
Other Exclusive Properties 2,800,000 4,550,000
Gross Estate 4,550,000 4,500,000 9,050,000
Less:
Ordinary Deductions
Conjugal Deductions
Funeral expenses (200,000) (200,000)
Other Deductions (1,600,000) (1,600,000)
Total Conjugal Deductions (1,800,000) (1,800,000)
Net Conjugal Estate 2,700,000
Special Deductions
Family Home (1,000,000)
Standard Deduction (1,000,000)
Medical Expenses (500,000)
Total Deductions (4,300,000)
Net Estate 4,750,000
Less: 1/2 Share of Surviving Spouse
Conjugal Property 4,500,000
Conjugal Deduction (1,800,000)
Net Conjugal Estate 2,700,000
(P2,700,000/2) (1,350,000)
Net Taxable Estate 3,400,000

Notes:
1. FH is the exclusive property of the decedent, hence, it does not form part of the conjugal gross estate.
2. The estate is allowed to claim the maximum P1 million FH deduction under 'special deductions.'

10
)
Exclusive Conjugal Total
Conjugal Properties:
Family Home 2,500,000
Other Real Properties 3,800,000 6,300,000
Exclusive Properties: 2,200,000 2,200,000
Gross Estate 2,200,000 6,300,000 8,500,000
Less:
Ordinary Deductions
Conjugal Deductions
Funeral expenses (200,000) (200,000)
Other Deductions (1,700,000) (1,700,000)
Total Conjugal Deductions (1,900,000) (1,900,000)
Net Conjugal Estate 4,400,000
Special Deductions
Family Home (1,000,000)
Standard Deduction (1,000,000)
Medical Expenses (480,000)
Total Deductions (4,380,000)
Net Estate 4,120,000
Less: 1/2 Share of Surviving Spouse
Conjugal Property 6,300,000
Conjugal Deduction (1,900,000)
Net Conjugal Estate 4,400,000
(P4,400,000/2) (2,200,000)
Net Taxable Estate 1,920,000
*
Exclusive Conjugal Total
Conjugal Properties:
Family Home 1,700,000
Other Real Properties 7,000,000 8,700,000
Exclusive Properties: 2,500,000 2,500,000
Gross Estate 2,500,000 8,700,000 11,200,000
Less:
Ordinary Deductions
Conjugal Deductions
Funeral expenses (200,000) (200,000)
Other Deductions (2,400,000) (2,400,000)
Total Conjugal Deductions (2,600,000) (2,600,000)
Net Conjugal Estate 6,100,000
Special Deductions
Family Home (850,000)
Standard Deduction (1,000,000)
Medical Expenses (500,000)
Total Deductions (4,950,000)
Net Estate 6,250,000
Less: 1/2 Share of Surviving Spouse
Conjugal Property 8,700,000
Conjugal Deduction (2,600,000)
Net Conjugal Estate 6,100,000
(P6,100,000/2) (3,050,000)
Net Taxable Estate 3,200,000

11
 !+
Exclusive Conjugal Total
Conjugal Properties:
Other Real Properties 3,300,000
Family Home 1,100,000 4,400,000
Exclusive Properties:
Other Real Properties 2,200,000
Family Lot 450,000 2,650,000
Gross Estate 2,650,000 4,400,000 7,050,000
Less:
Ordinary Deductions
Conjugal Deductions
Funeral expenses (150,000) (150,000)
Other Deductions (1,500,000) (1,500,000)
Total Conjugal Deductions (1,650,000) (1,650,000)
Net Conjugal Estate 2,750,000
Special Deductions
Family Home
Exclusive Lot 450,000
Conjugal Home
(P1,100,000/2) 550,000 (1,000,000)
Standard Deduction (1,000,000)
Medical Expenses (450,000)
Total Deductions (4,100,000)
Net Estate 2,950,000
Less: 1/2 Share of Surviving Spouse
Conjugal Property 4,400,000
Conjugal Deduction (1,650,000)
Net Conjugal Estate 2,750,000
(P2,750,000/2) (1,375,000)
Net Taxable Estate 1,575,000

1. T 6. T
2. T 7. T
3. T 8. T
4. T 9. T
5. T 10. F

! Exclusive Communal Total

Communal Properties:
Lot w/ apartment, QC 1,800,000
Lot w/ apartment, Makati 1,200,000 3,000,000
Exclusive Properties:
Farm, Nueva Ecija 600,000 600,000
Gross Estate 600,000 3,000,000 3,600,000
(Less): Communal Deductions
Funeral expenses (100,000) (100,000)
Judicial expenses (200,000) (200,000)
Accounst payable (70,000) (70,000)
Fire loss (30,000) (30,000)
Exclusive Deductions
Unpaid mortgage on farm (150,000) (150,000)
Legacy to Makati City (100,000) (100,000)
Net Estate After Deductions 350,000 2,600,000 2,950,000

12
 (Less):
Share of surviving spouse (1,300,000) (1,300,000)
Standard deduction (1,000,000) (1,000,000)
Net Taxable Estate 350,000 300,000 650,000
Estate Tax Due
On 500,000 15,000
150,000 at 8% 12,000
650,000 27,000
"
Exclusive Communal Total
Communal Properties:
Family home 1,300,000
Investment in a business partnership 2,000,000
Fishpond 1,000,000
Personal property 700,000 5,000,000
Exclusive Properties:
Ranch 200,000 200,000
Gross Estate 200,000 5,000,000 5,200,000
(Less): Communal Deductions
Funeral expenses (80,000) (80,000)
Unpaid mortgage on fishpond (300,000) (300,000)
Unpaid real property taxes (20,000) (20,000)
Exclusive Deductions
Unpaid mortgage on ranch (50,000) (50,000)
Net Estate After Deductions 150,000 4,600,000 4,750,000
(Less):
Share of surviving spouse (2,300,000) (2,300,000)
Family home (650,000) (650,000)
Standard deduction (1,000,000) (1,000,000)
Net Taxable Estate 150,000 650,000 800,000

Estate Tax Due

On 500,000 15,000
300,000 at 8% 24,000
800,000 39,000
#
Exclusive Communal Total
Communal Properties:
Family home 3,000,000
Inherited from father 1,200,000
Owned by Mrs. Llovido before marriage 300,000 4,500,000
Exclusive Properties:
Received as gift from mother 1,115,000
Income from gift from mother 5,000 1,120,000
Gross Estate 1,120,000 4,500,000 5,620,000
(Less): Communal Deductions
Funeral expenses (50,000) (50,000)
Judicial expenses (100,000) (100,000)
Medical expenses (70,000) (70,000)
Obligations during marriage (150,000) (150,000)
Exclusive Deductions
Indebtedness before marriage (20,000) (20,000)
Net Estate After Deductions 1,100,000 4,130,000 5,230,000
(Less):
Share of surviving spouse (2,065,000) (2,065,000)
Family home (1,000,000) (1,000,000)
Standard deduction (1,000,000) (1,000,000)
Net Taxable Estate 1,100,000 65,000 1,165,000
13
 Estate Tax Due
On 500,000 15,000
665,000 at 8% 53,200
1,165,000 68,200
$
Exclusive Communal Total
Communal Properties:
Family home acquired during marriage 4,000,000
Owned by Mr. Castaneda before marriage 300,000
Owned by Mrs. Castaneda before marriage 200,000 4,500,000
Exclusive Properties:
Inheritance 2,000,000 2,000,000
Gross Estate 2,000,000 4,500,000 6,500,000
(Less): Communal Deductions
Funeral expenses (200,000) (200,000)
Judicial expenses (80,000) (80,000)
Unpaid obligations (35,000) (35,000)
Exclusive Deductions
Unpaid mortgage on property inherited (200,000) (200,000)
Vanishing deduction (Sch.) (736,615) (736,615)
Net Estate After Deductions 1,063,385 4,185,000 5,248,385
(Less):
Share of surviving spouse (2,092,500) (2,092,500)
Family home (1,000,000) (1,000,000)
Standard deduction (1,000,000) (1,000,000)
Net Taxable Estate 1,063,385 92,500 1,155,885
Estate Tax Due
On 500,000 15,000
655,885 at 8% 52,471
1,155,885 67,471
Schedule of Vanishing Deduction:
Value taken, Property inherited 1,100,000
Less: Mortgage paid 100,000
Initial basis 1,000,000
Less: 1,000,000 x 515,000 ** 79,231
6,500,000 *
Final Basis 920,769
Multiply by rate 80%
Vanishing deduction 736,615
* Gross estate
** Funeral expenses, Judicial expenses, Unpaid obligations, Unpaid mortgage on property inherited

14
 1. C 6. D 11. A
2. C 7. C 12. D
3. B 8. B 13. C
4. D 9. A 14. C
5. A 10. D

!
a. Philippine estate tax:
On P2,000,000 P135,000

Allowable tax credit:

, !
USA
(P600,000/P2M x P135,000) P 40,500
Actual 250,000
Allowed P40,500

Singapore
(P400,000/P2M x P135,000) P 27,000
Actual 120,000
Allowed 27,000
Total (Limitation 1) P67,500

, "
(P1M/P2M x P135,000) P 67,500
Actual (P250,000 + P120,000) 370,000
Allowed P67,500

Tax credit to be deducted (either limitation) P67,500

b. Philippine estate tax still due:

Philippine estate tax P135,000
Less: Tax credit 67,500
Estate tax still due P 67,500

"

1a. Philippine estate tax:

On P 500,000 P15,000
700,000 x 8% 56,000
P1,200,000 P71,000

b. Allowable tax credit:

, !
Indonesia
(P400,000M/1.2M x P71,000) P23,666.67
Actual 10,000.00
Allowed P10,000

Vietnam
(P200,000/P1.2M x P71,000) P11,833.33
Actual 2,000.00
Allowed 2,000
Total (Limitation 1) P12,000

, "
(P600,000/P1.2M x P71,000) P35,500.00
Actual (P10,000 + P2,000) 12,000.00
Allowed P12,000

15
 Tax credit to be deducted (either limitation) P12,000

c. Philippine estate tax still due:

Philippine estate tax ( computed in a) P71,000
Less: Tax credit (computed in b) 12,000
Estate tax still due P59,000

2a & c.
On P500,000 P15,000
100,000 x 8% 8,000
P600,000 P23,000
b. No allowable tax credit.

1. F 6. T 1. B 6. A, B
2. T 7. T 2. C 7. D
3. T 8. F 3. A 8. B
4. T 9. T 4. B 9. B
5. F 10. T 5. C 10. D

1. F 6. T 1. C 6. D
2. T 7. T 2. A 7. D
3. F 8. T 3. B 8. B
4. T 9. T 4. D
5. T 10. T 5. B

1. F 6. F 1. C
2. T 7. T 2. B
3. T 8. T 3. C
4. T 9. F 4. D
5. T 10. T 5. A
6. B

%
-
1. C 6. D 11. D 16. B
2. C 7. A 12. B 17. B
3. B 8. A 13. D 18. D
4. B 9. D 14. A 19. A
5. D 10. A 15. C 20. B
21. B

&
-
1. D 6. C 11. C 16. C 21. D 1. C 6. C
2. D 7. B 12. A 17. D 2. A 7. A
3. D 8. C 13. D 18. B 3. C 8. C
4. B 9. D 14. B 19. A 4. A 9. B
5. P90,000 10. A 15. A 20. C 5. A 10. C
11. D

16
For nos. 6-21, please see computation below.
./
1. Donors tax to be based on the table for donations to non-strangers.
Gross gift, June 13, To Lance P700,000
Less: Exemption 300,000
Net gift P400,000
Add: Prior net gift
Gross gift, Jan. 25, To Leonard P400,000
Less: Exemption 10,000 390,000
Aggregate net gift P790,000
Donors tax, total net gift
On P500,000 P14,000
290,000 x 6% 17,400 P31,400
P790,000
Less: Tax on prior net gift
On P200,000 P2,000
190,000 x 4% 7,600 9,600
P390,000
Donors tax still due P21,800
2. 30% Donors tax for donations to strangers.
Gross gift, Dec. 25, To Patty P430,000
Less: Exemption 30,000
Net gift P400,000
Add: Prior net gift
Gross gift, Jan. 25, To Pam P400,000
Less: Exemption 0
Net gift P400,000
Gross gift, Apr. 8, To IBP P400,000
Less: Exemption 400,000
Net gift 0
Gross gift, May. 13, To Cavite Prov. P2,000,000
Less: Exemption 2,000,000
Net gift 0 400,000
Total net gift P800,000
Multiply by: 30%
Donors tax on total net gift P240,000
Less: Donors tax on all prior net gift
(Jan. 25, P400,000 x 30%) 120,000
Donors tax due P 120,000

./

1. Donors tax to be based on the table for donations to non-strangers.

Gross gift, Dec. 25, To Patty P430,000
Less: Exemption 30,000
Net gift P400,000
Add: Prior net gift
Gross gift, Jan. 25, To Leonard P400,000
Less: Exemption 10,000 390,000
Aggregate net gift P790,000
Donors tax, total net gift

On P500,000 P14,000
290,000 x 6% 17,400 P31,400
P790,000

Less: Tax on prior net gift

On P200,000 P2,000
190,000 x 4% 7,600 9,600
P390,000
Donors tax still due P21,800

17
2. 30% Donors tax for donations to strangers.
Gross gift, June 13, To Lance P700,000
Less: Exemption 300,000
Net gift P400,000
Add: Prior net gift

Gross gift, Jan. 25, To Pam P400,000

Less: Exemption 0
Net gift P400,000

Gross gift, Apr. 8, To IBP P400,000

Less: Exemption 400,000
Net gift 0

Gross gift, May. 13, To Cavite Prov. P2,000,000

Less: Exemption 2,000,000
Net gift 0 400,000

Total net gift P800,000

Multiply by: 30%
Donors tax on total net gift P240,000
Less: Donors tax on all prior net gift
(Dec. 25, P400,000 x 30%) 120,000
Donors tax due P120,000

!
a. Philippine donors tax:
On P2,000,000 P135,000

Allowable tax credit:

, !
Netherlands
(P600,000/P2M x P135,000) P 40,500
Actual 250,000
Allowed P40,500
Venezuela
(P400,000/P2M x P135,000) P 27,000
Actual 120,000
Allowed 27,000
Total (Limitation 1) P67,500

, "
(P1M/P2M x P135,000) P 67,500
Actual (P250,000 + P120,000) 370,000
Allowed P67,500
Tax credit to be deducted (either limitation) P67,500

b. Philippine donors tax still due:

Philippine donors tax P135,000
Less: Tax credit 67,500
Donors tax still due P 67,500
"
1a. Philippine donors tax:
On P 500,000 P15,000
700,000 x 8% 56,000
P1,200,000 P71,000

18
 b. Allowable tax credit:
, !
Cambodia
(P400,000M/1.2M x P71,000) P23,666.67
Actual 10,000.00
Allowed P10,000
Aruba
(P200,000/P1.2M x P71,000) P11,833.33
Actual 2,000.00
Allowed 2,000
Total (Limitation 1) P12,000

, "
(P600,000/P1.2M x P71,000) P35,500.00
Actual (P10,000 + P2,000) 12,000.00
Allowed P12,000

Tax credit to be deducted (either limitation) P12,000

c. Philippine donors tax still due:

Philippine donors tax ( computed in a) P71,000
Less: Tax credit (computed in b) 12,000
Donors tax still due P59,000
2a & c.
On P500,000 P15,000
100,000 x 8% 8,000
P600,000 P23,000

b. No allowable tax credit.

1. T 6. T 1. C
2. T 7. T 2. B
3. F 8. T 3. C
4. T 9. T 4. A
5. T 10. F 5. A

Suysan Realty next page please.

1. P18,000
2. P250,000 x 12% = P30,000
P125,000 x 12% = P15,000
P100,000 x 12% = P12,000
P25,000 x 12% = P3,000
Not covered
P50,000 x 12% = P6,000
P50,000 x 12% = P6,000
Total Output Tax = P72,000
3. P2,525,000 x 12/112 = P270,535.71 (a)
P1,701,080 x 12% = P204,129.60 (b)
P270,000 x 12% = P32,400 (c)
VAT Due = ((a) + (c)) ((b) + P18,500) = P80,306.11

Problem 1:
Sales Scheme: no reservation, 10/40/50
Selling Price per Contract (excluding VAT), Jan. 5, 2012 3,199,200
Downpayment, Jan. 15, 2012 319,920 10%
Balance 2,879,280 90%
Balance to be paid as follows:
40% in equal monthly amortizations 1,279,680 40%
50% upon turnover 1,599,600 50%
2,879,280 90%
19
 Zonal Value 2,800,000
Term (in months) 36
Monthly Amortization 35,546.67
Total Monthly Amortizations (Jan. 31 to Dec. 31, 2012) 426,560.00 12
Initial Payments (DP and MA during the year) 746,480.00
Divided by: GSP (see if fair value is lower) 3,199,200.00
Test (whether sale is on installment or on deferred-payment) 23.33% did not exceed 25%

What will be the basis of VAT? selling price per contract

How much is the downpayment before VAT? 319,920.00
What is the amount to be paid (ex-VAT) before turnover? 1,599,600.00
How much will the monthly amortization (ex-VAT) be? 35,546.67
What is the total amortizations (VAT inclusive) during the year of sale? 477,747.20
What is the initial payments? 746,480.00
Is this sale on installment or on deferred-payment basis? on installment
How much is the output tax related to the event on Jan. 15, 2012? 38,390.40
How much is the output tax related to the event on Jan. 31, 2012? 4,265.60
How much is the total output tax related to this sale for 2012? 89,577.60
Problem 2:
Sales Scheme: no reservation, 10/50/40
Selling Price per Contract (excluding VAT), Jan. 5, 2012 2,700,000
Downpayment, Jan. 15, 2012 270,000 10%
Balance 2,430,000 90%
Balance to be paid as follows:
50% in equal monthly amortizations 1,350,000 50%
40% upon turnover 1,080,000 40%
2,430,000 90%

Zonal Value 2,525,000

Term (in months) 36
Monthly Amortization 37,500.00
Total Monthly Amortizations (Jan. 31 to Dec. 31, 2012) 450,000.00 12
Initial Payments (DP and MA during the year) 720,000.00
Divided by: GSP (see if fair value is lower) 2,700,000.00
Test (whether sale is on installment or on deferred-payment) 26.67% exceeded 25%

What will be the basis of VAT? selling price per contract

How much is the downpayment before VAT? 270,000.00
What is the amount to be paid (ex-VAT) before turnover? 1,080,000.00
How much will the monthly amortization (ex-VAT) be? 37,500.00
What is the total amortizations (VAT inclusive) during the year of sale? 504,000.00
What is the initial payments? 720,000.00
Is this sale on installment or on deferred-payment basis? on deferred-payment
How much is the output tax related to the event on Jan. 2012? 324,000.00
How much is the output tax related to the event on Feb. 28, 2012? zero

1. B
2. A
3. D
4. D
5. C

20
1. B 6. D
2. B 7. C
3. D
4. C
5. A

1. B 1. A 6. B 11. D 1. B 6. D 11. B
2. B 2. D 7. D 12. C 2. D 7. C 12. D
3. B 3. C 8. D 13. B 3. B 8. C 13. A
4. B 4. A 9. D 14. B 4. C 9. D
5. C 5. B 10. D 15. C 5. B 10. D

1. B 6. B 11. C 16. D 1. A 6. C
2. A 7. A 12. D 17. B 2. B
3. D 8. B 13. A 3. B
4. B 9. B 14. B 4. D
5. C 10. C 15. A 5. C

SGB Corporation
Total amount per invoice P530,000 Local purchases-goods P270,000
Add: Deemed sales-goods taken for personal use 12,000* Local purchases-services 50,000
Gross taxable sales/receipts P542,000 Total amount per invoice/receipt P320,000
Deduct: Allowable sales returns & allow. 17,000 Less: Allowable purchase ret. & allow. 7,500
Net taxable sales/receipts P525,000 Net purchases P312,500
Multiply by 12% Multiply by 12%
Output tax P 63,000 Input Tax P 37,500

Advance VAT

a) Invoice value (peso)* P 905,000 (1) a) Invoice value P800,000 (1)

b) Customs duties & other
charges except VAT 200,000 b) Estimated freight expenses 18,000
c) 5% Mark-up (a + b) c) 5% Mark-up (a + b)
5% (905,000 + 200,000) 55,250 (2) 5% (800,000 + 18,000) 40,900 (2)
Total (a + b + c) P 1,160, 250 Total (a + b + c) P858,900
Multiply by 75% Multiply by 75%
Tax base P870,187.50 (3) Tax base P644,175 (3)
Multiply by VAT rate 12% Multiply by VAT rate 12%
Advance VAT P104,422.50 (4) Advance VAT P 77,301 (4)

*US$20,000 x P45.25 = 905,000

21
1. B 6. B 11. C 16. D 21. B 26. A
2. C 7. B 12. C 17. A 22. C 27. A
3. D 8. C 13. D 18. A 23. C 28. D
4. D 9. B 14. C 19. D 24. D 29. D
5. D 10. D 15. B 20. B 25. D 30. A

Sales Value Output Input VAT

Taxpayer Price Added Tax Tax Payable
Concessionaire 100 100 10 0 10
Manufacturer 250 15
Wholesaler & 45 25
Retailer 700 250 &
Household (Purchase Price) 700 70 = P770

1. A 6. D 1. A 6. A 1. B 1. B
2. D 7. B 2. A 7. D 2. B 2. A
3. D 8. B 3. B 3. A 3. C
4. B 9. A 4. A 4. B* 4. C
5. D 10. A 5. C 5. A 5. A
11. Any answer is acceptable. 6. D

*2012 = P11,832 (394,400 x 3%). Note that the receipts of P350,000 is below the new
threshold of P394,400 (which is P98,600 per cab per quarter).
Mr. A Customs Broker

Output Tax Due (P1,000,000 x 12%) P120,000.00 (1)

Less: Input Taxes
(a) Directly Attributable
(1) Purchase of supplies P200,000
(2) Freight services 80,000
Total Purchases P280,000
Multiply by VAT rate 12% (33,600.00) (2)
(b) Purchase of service common to both the
activity subject to VAT and the
activity not subject to VAT P300,000
(Rental of office space)
Rule on Apportionment:
P1,000,000/P1,600,000* x P300,000
P1,000,000 VAT sale
600,000 Non-VAT sale P187,500
P1,600,000 *Total Sales x 12% (22,500.00) (2)
Net VAT Payable P 63,900.00 (3)

1. 20,000 4. 7,000 7. 18,000

2. 10,000 5. 9,000 8. 5,000
3. 8,000 6. 0 9. 8,000

Q4: Input tax attributable to VAT-exempt sales for the month-

Input tax on VAT-exempt sales - P2,000

Ratable portion of the input tax not
directly attributable to any activity:

VAT-exempt sales Amount of input tax

x
Total Sales not directly attributable

P100,000 P5,000
x P20,000 -
400,000

22
 Total input tax attributable to - P7,000
VAT-exempt sales

Q5: Input tax attributable to sales to government for the month-

Input tax on sale to government - P4,000

Ratable portion of the input tax not
directly attributable to any activity:

Taxable sales to government Amount of input tax

x
Total Sales not directly attributable

P100,000 P5,000
x P20,000 -
400,000

Total input tax attributable to sales - P9,000

to government

Q7: Creditable input tax for the month-

Input tax on sale subject to 12% - P 5,000

Input tax on zero-rated sales - 3,000
Ratable portion of the input tax not
directly attributable to any activity:

Taxable sales (0% and 12%) Amount of input tax

x
Total Sales not directly attributable

P200,000 P10,000
x P20,000 -
400,000

Total creditable input tax for the month - P18,000

The table below shows a summary of the foregoing transactions of DBA Corporation:

Input VAT Input VAT not Total Creditable Excess Input Unrecover-
Output directly directly Input Input Net VAT Input VAT for able Input
VAT attributable attributable to VAT VAT Payable VAT for refund VAT
any activity carry-over
Sale subject to 12%
VAT 12,000 5,000 5,000 10,000 10,000 2,000 0 0 0
Sale subject to 0% VAT
0 3,000 5,000 8,000 8,000 0 0 8,000 0
Sale of Exempt Goods
0 2,000 5,000 7,000 0 0 0 0 7,000*
Sale to Govt. subject to
5% Final 12,000 4,000 5,000 9,000 7,000** 5,000 0 0 2,000*
Withholding VAT
20,000
* These amounts are not available for input tax credit but may be recognized as cost or expense.
**Standard input VAT of 7% on sales to Government as provided in Sec. 4.114-2(a).

Withheld by Government entity as Final Withholding VAT.

23
 &
-
1. A (50,000 x 5%) 6. D 1. C 1. A 6. C
2. D (50,000 x 7%) 7. C 2. A 2. D 7. B
3. C (2,500 + 3,500) 8. A 3. D* 3. C
4. A 9. C 4. A 4. B
5. D 10. B 5. A 5. C
*15 x 21,900 x 3%

For nos. 8-10, please see computation below.

Note: In 2010, upon pretermination, the loan agreement shall be
reclassified and the correct gross receipt tax, including prior years,
For nos. 4-6, please see computation below. shall be recomputed on the basis of the new category as shown
hereunder:
Gross
Interest Income with Maturity of Less Remaining Amount of Applicable Receipts
than Five Years P100,000 Year Maturity Interest, etc. Tax Rate Tax
P5,000 (4)
Multiply by GRT Rate 5% 2008 4 P100,000 5% P5,000
Rentals P50,000 2009 3 100,000 5% 5,000
Multiply by GRT Rate 7% 3,500 (5) 2010 2 100,000 5% 5,000
Net Trading Gain for April 2012 P20,000 2011 1 100,000 5% 5,000
Less than 1
Less: Net Trading Loss for March 2012 (10,000) 2012 year 100,000 5% 5,000
Adjusted Net Trading Gain P10,000 P25,000
Multiply by GRT Rate 7% 700
Total P9,200 (6) Total Gross Receipts Tax P25,000 (8)
Less: GRT Previously Paid 9,000 (9)
GRT Due as Recomputed P16,000 (10)

Biyahe Pilipinas Bus

1. P1,500,000 x 3% = P45,000
2. P750,000 x 12% = P90,000
P250,000 x 12% = P30,000
Total VAT = P120,000

MVP Company

3. VAT = 9M x 12% = P1,080,000

4. VAT = 9M x 12% = P1,080,000
5. % Tax = 9M x 3% = P270,000
6. VAT = 9M x 12% = P1,080,000
7. % Tax = 9M x 2% = P180,000
8. VAT = 8.65M x 12% = P1,038,000
% Tax = .35M x 10% = P35,000

()*+, -.,+

24
25