1.

The following are the characteristics of estate tax, except:

a. National
b. General
c. Ad valorem
d. Excise
e. Indirect

2. First Statement: Estate tax is a tax imposed on a person's exercise of his right to gratuitously dispose his property upon his death.
Second Statement: Donor's tax is a tax imposed on a person's exercise of his right to gratuitously dispose his property during his lifetime without
regard to the donee.
a. True, True
b. True, False
c. False, False
d. False, True

3. First Statement: Succession is the mode of acquisition whereby the property rights and obligation of a person is deemed transmitted to his heir,
successors or beneficiaries, upon his death, either by his will or by operation of law,
Second Statement: Succession takes effect upon acceptance by the heirs of the properties left behind by the decedent.
a. True, True
b. True, False
c. False, False
d. False, True

4. First statement: Estate Tax is governed by the law prevailing at the time of death of the decedent.
Second Statement: Estate tax is governed by the law prevailing at the time of distribution of the properties to the heirs.
a. True, True
b. True, False
c. False, False
d. False, True

5. The following are the elements of succession, except:

a. Decedent
b. Heir
c. Estate
d. Executor

6. LEBRON transferred via his death a real property with a zonal value of P5,000,000, assessed value OF P3,500,00, and net book value of P6,000,
000. How much is the amount includible to gross estate?

7. KOBE sold his laptop to BRYANT for P30,000 which is sufficiently lower than the market price of P200,000, A week after, KOBE died on an accident.
The fair value of the laptop is P150,000. Compute for the gross estate.

8. JORDAN, an American citizen in the Philippines, transferred via succession 5,000 LISTED STOCKS with par value of 10/share and book value of
5/share, In the stock exchange, the highest quotation is 12/share and lowest quotation is 6/share. Compute for the gross estate.

9. LUKA had a family home worth P1,500,000 which was encumbered by a mortgage. Details about the mortgage were as follows:
Original amount P900,000
Less:
Amount paid before death (P200,000)
Amount paid after death (P400,000)
Present balance of the mortgage payable P300,000
Compute for the gross estate.
10. KYRIE, single, died leaving properties he inherited 2 and 1/2. years ago with a current fair market value of P 800,000 (as of the date of death). The
property was inherited when it was worth P1,000,0000 and had a P850,000 unpaid mortgage. KYRIE paid P550,000 until his death. Other
properties of KYRIE had a fair market value of P1,200,000 at the time of his death. The losses, taxes, and transfer for public purpose amounted to
P140,000. How much is the vanishing deduction?

11. The estate tax is determined by multiplying 6% of:

a. Gross estate within and outside of the Philippines of a decedent who was Chinese and resident of the Philippines,
b. Net taxable estate within the Philippines of a decedent who was resident and citizen of China.
c. Gross estate within the Philippines of a decedent who was resident and citizen of China.
d. Net taxable estate within and outside of the Philippines of a decedent who was a resident and citizen of China.

12. Intangible properties located in the Philippines is included in the gross estate of the following except:
a. Resident and citizen of the Philippines
b. Resident of the Philippines and citizen of Japan
c. Resident and alien of the United States of America, with reciprocity.
d. Resident of Japan and citizen of the United states of America, with reciprocity

13. The following are intangible properties in the Philippines, except:

a. Franchise which must be exercised in the Philippines
b. Shares, obligations or bonds issued by any corporation or sociedad anonima organized or constituted in the Philippines in accordance with
its laws
c. Shares, obligations or bonds issued by any foreign corporation sixty-five percent (65%) of the business of which is located in the Philippines
d. Shares, obligations or bonds issued by any foreign corporation if such shares, obligations or bonds have acquired business situs in the
Philippines
e. Shares or rights in any partnership, business or industry established in the Philippines

14. The following are inclusions in the gross estate of the decedent, except

a. Donation mortis causa

b. Donation inter vivos
c. Transfer in contemplation of death
d. Transferred to the decedent under general power of appointment

15. 1st statement: Diego died giving Hector power to appoint a person who will inherit Diego's house and lot. Hector, however can only choose among
Anton, Donita and Fidel. Hector decided to transfer the property to Fidel. The transfer from Hector to Fidel is subject to estate tax.

FALSE

16. 2nd statement: During Angela's lifetime, he decided to give Brian as gift her (Angela's) car subject to the condition that if Brian does not become a
CPA within 3 years, Angela shall revoke the transfer. In the second year however, Angela died. The car should form part of Angela's gross estate.

FALSE

17. As one of the properties whereby the decedent exercises owner's interest, proceeds of lie insurance, on the life of the decedent is generally
included in the gross estate, except

a. Beneficiary is the estate, executor or administrator and the designation of the beneficiary on the life insurance policy is revocable;
b. Beneficiary is the estate, executor or administrator and the designation of the beneficiary on the life insurance policy is irrevocable;
c. Beneficiary is any person other than the estate, executor or administrator and the designation of the beneficiary is revocable;
d. Beneficiary is other than the estate, executor or administrator and the designation of the beneficiary is irrevocable.
18. The list provided below is excluded from the gross estate, except:

a. Exclusive property of the surviving spouse;

b. Properties outside the Philippines of a non-resident alien decedent;
c. Intangible personal property outside of the Philippines of non-resident alien when the rule of Reciprocity applies.
d. Share of the surviving spouse in the conjugal/community properties;

19. The following are transfers exempt from transfer tax, except

a. Transmission from the first heir or done in favor of 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. All bequests, devises, legacies or transfers to social welfare, cultural and charitable institutions

20. The following losses are deductible from the gross estate, except:

a. Car donated mortis causa, struck by lightning 2 hours after the decedent's death;
b. 2 carats diamond ring reported stolen by the decedent, a night before his death;
c. Php50,00 cash in bank of the decedent, reported stolen to the BIR 30 days after the decedent's death;
d. A diamond necklace fairly valued at the time of the decedent's death at Php200,000 t was reported stolen, 45 days after the decedent's
death. The diamond necklace was insured whereby the insurance company paid Php 1,500,000 to the estate, due to the loss of the diamond
necklace.

21. The following are taxes deductible from the gross estate of a decedent, except

a. Estate tax
b. Real property tax accrued in the year of death, paid before death
c. Income tax on income earned before death and remaining unpaid
d. Unpaid donor's tax on property donated before death

22. The following are characteristics of estate taxation of a non-resident alien, except:

a. The gross estate shall comprise of properties located within the Philippinesonly.
b. Not allowed to claim family home deductions.
c. Not allowed to claim vanishing deductions.
d. Allowed deduction for expenses, losses, indebtedness, taxes, etc.

23. The following are the deductions allowed to the estate of a non-resident alien decedent, except

a. Property previously taxed A.K.A Vanishing deductions

b. Transfers for public use
c. Net share of the surviving spouse in the net conjugal/community property
d. Standard deduction of Php500,000
e. Full ELITE