Calculate the total amount of conjugal properties

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Reference no: EM132646469

Question - Juan Torres, married in 1993, resident of Naga City, died testate September 20, 2013 leaving the following properties:

House and lot in Manila (family home) P2,000,000

Life insurance, irrevocable, payable to his son 500,000

Cash, receivables, etc. (the estate has a claim against Jose Torres, insolvent, for P15,000, not included) 700,000

Market value of 50,000 shares (P0.5 per share)

Of Arts Company, listed and traded (par value, P30,000)

Assets inherited from his mother who died September 3, 2012:

Taxes were paid on his mothers estate

Assets Mothers estate Present estate

Shares of stock, SMC P45,000 P40,000

Shares of stock, ABB 10,000 45,000

Land, Manila 50,000 100,000

House, Quezon City 835,000 1,175,000

Note: the land was mortgaged for P60,000 when inherited and deducted in prior estate. Juan Torres paid P35,000 before he died.

Land, donated in 1997 by his father who died Oct. 12,2011.

Fair market value on date of donation P600,000

Fair market value in present estate 900,000

Note: Juan Torres mortgaged the property for P100,000 for the benefit of the conjugal partnership and paid P60,000 before he died

Deductions claimed:

Funeral services by Horizontal Funeral Home P125,000

Other funeral expenses 50,000

Cost of the burial plot and tombstone 15,000

Loans from PNB 30,000

Policy loan from SSS 20,000

Income tax on income of Juan Torres

From 1/1/13 to 9/19/13 23,000

Income tax on income of estate of Juan Torres in 2013 7,000

Real estate tax payable for the 4thquarter of 2013 on

House and lot in Manila 10,000

Legacy to Sorsogon College for scholarship 25,000

Medical expenses incurred several days before his death But paid only on September 30,2013 45,000

Required -

1. Calculate the total amount of conjugal properties?

a. P2,740,000

b. 2,260,000

c. 5,000,000

d. 1,022,000

2. Calculate the gross estate?

a. P2,740,000

b. 5,000,000

c. 2,260,000

d. 1,022,000

3. Calculate the vanishing deduction?

a. P1,932,832

b. 694,168

c. 669,168

d. 836,460

4. Calculate the taxable net estate?

a. P1,932,832

b. 726,832

c. 694,168

d. 33,147

5. Calculate the estate due?

a. P33,146

b. 726,832

c. NONE

Reference no: EM132646469

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