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Exercises - Chapter 12 and 13
B.S. Accountancy (University of San Agustin)
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Chapter 12 – Introduction to Transfer
Taxation
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True or False 1
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1. A transfer is either
bilateral or unilateral.
2. Unilateral transfers are
subject to transfer tax.
3. Bilateral transfers are
subject to income tax.
4. Unilateral transfers
include sales and barters.
5. Bilateral transfers include
inheritance and donations.
6. Donations inter-vivos are
subject to estate tax.
7. A donation mortis causa is
subject to donor’s tax.
8. The transferee in a
donation is referred to as a
donee.
9. The transferee in a
succession is referred to as
an heir.
10. The transferor in a
donation inter-vivos is a
donor.
11. The transferee in a
donation mortis causa is a
decedent.
12. Complex transfers are
subject to both income tax
and transfer tax.
13. What constitutes an
“adequate consideration” is
a question of fact.
14. Both the transfer and
exchange element of a
complex transfer are subject
to transfer tax.
15. Transfer tax supports
income taxation.
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as a mode of redistribution of
wealth to society.
The dominant view of
transfer tax is the ability to
pay theory.
4. Transfer tax is a tax on the
privilege to transfer property
gratuitously.
5. Transfer taxes are national
taxes.
6. Transfer tax is a form of
specific tax.
7. Transfer tax is an indirect
tax.
8. Transfer tax is a revenue
tax.
9. Transfer taxpayers are
classified into two groups:
residents and non-residents.
10. Non-residents aliens are
subject to tax only on
transfers of Philippine
properties.
11. Citizens are subject to
tax on transfers of properties
regardless of location.
12. Aliens are subject to tax
only on transfers of
properties situated in the
Philippines.
13. Residents are subject to
tax on transfers of properties
regardless of location.
14. Non-residents are taxed
only on transfers of property
located in the
Philippines.
15. The reciprocity rule on
intangible personal property
applies only to nonresident
aliens.
True or False 3
True or False 2
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1. Transfer tax is intended to
recoup future reduction in
business taxes.
2. Transfer tax can be viewed
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1. The reciprocity rule may
apply to movable personal
property located in the
Philippines.
2. The reciprocity rule
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applies to intangible
properties of an alien located
in the Philippines.
3. Franchises are subject to
transfer tax in the place
where they are exercised.
4. The shares and bonds of
domestic corporations are
presumed situated in the
Philippines for purposes of
transfer taxation.
5. Shares and bonds of
foreign corporations are
always presumed situated
abroad for transfer tax
purposes.
6. For purposes of transfer
tax, the interest in a
business partnership
organized abroad is
presumed situated abroad.
7. Cash is considered an
intangible property.
8. Shares of stocks and
bonds are tangible personal
properties.
9. Donations inter-vivos are
subject to transfer tax at the
point of death of the donor.
10. Donations mortis causa
are subject to transfer tax at
the death of the decedent.
11. Donations inter-vivos are
inspired by the generosity of
the donor.
12. A donation mortis causa
is effected by the death of
the decedent.
13. As a rule, all properties of
the donor existing at the
point of death constitute Ifs
donation mortis causa.
14. All forms of gratuitous
transmission of property
while the donor is living is
considered donation intervivos.
15. Transfers in
contemplation of death are
donations made inter-vivos
but are actually donation
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mortis causa.
16. The transfers of property
which conveys title to the
property only upon death of
the donor are donations
mortis causa.
17. Estate tax rates are
higher than donor’s tax
rates.
18. Incomplete transfers are
not subject to tax o physical
transfer of the property.
19. Incomplete transfers
which are pre-terminated by
the death of the transferor
are subject to estate tax.
20. When incomplete
transfers are completed
during the lifetime of the
transferor, the transfer is
subject to donor’s tax.
Multiple Choice – Theory: Part 1
1. Which is subject to transfer tax?
a. Gratuitous transfers
c. Complex
transfers
b. Onerous transfersd. A and C
2. Which is subject to transfer tax?
a. Sale
b. Barter
c. Donation
d. Loan
3. A property is transferred for less than
full consideration when it is sold
a. above the fair value of the
property.
b. below the fair value of the
property.
c. at the fair value of the property.
d. at any price which is deemed
unacceptable to the seller.
4. Gratuity is not characterized by
a. Absence of consideration
b. Presence of adequate consideration
c. Presence of inadequate
consideration
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d. A and C
producing property to few or several
taxpayers.
5. Transfers for full or adequate
consideration is subject to
What theory statement does the
statement describe?
a. Income tax
c. Both A and B
b. Transfer taxd. Neither A nor B
6. Transfer for inadequate consideration
is subject to
a. Income tax c. Both A and B
b. Transfer tax
d. Neither A nor B
7. The transfer for adequate
consideration is
a. Exempt from transfer tax
b. Exempt from income tax
c. Subject to transfer tax
d. B and C
8. The gratuitous component of a
transfer for inadequate consideration
is
a. Subject to income tax
b. Exempt from income tax
c. Exempt from transfer tax
d. A and B
9. Who is the taxpayer in donor’s tax?
a. Donor
b. Trustee
c. Donee
d. Beneficiary
10. Who is the taxpayer in estate
taxation?
a. Decedent c. Administrator
b. Estate
d. Executor
11. Which is not a rationalization of
transfer taxation?
a. Tax evasion
c. State
partnership
b. Tax recoupment d. All of these
12. Transfer tax is imposed to partially
recover future reduction in income tax
which will arise from the split of income
a.
b.
c.
d.
Tax evasion theory
Tax recoupment theory
Benefit received theory
Wealth redistribution theory
13. The government enforces the
transfer of property by donation and
succession. By exercising these
privileges, the transferor must have to be
taxed. What theory does the statement
describe?
a.
b.
c.
d.
Tax evasion theory
Tax recoupment theory
Benefit received theory
Ability to pay theory
14. The transfer of wealth should be
taxed so that it will benefit the entire
society. Which theory does the statement
describe?
a.
b.
c.
d.
State partnership theory
Ability to pay theory
Wealth redistribution theory
Tax recoupment theory
15. Wealth accumulation could not be
possible without the government’s
indirect participation. The transfer of
wealth should be subject to tax because
it is just fair for the government to take
its just share on the wealth.
The statement describes
a.
b.
c.
d.
State partnership theory
Ability to pay theory
Wealth redistribution theory
Tax minimization theory
16. Transfers can be structured in such a
way to avoid payment of income tax.
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Thus, the gratuitous component of
transfers must be taxed.
The statement describes
a.
b.
c.
d.
Tax evasion theory
Tax recoupment theory
Benefit received theory
Ability to pay theory
1. Transfer tax on donation mortis causa
applies to a
c. Local tax
d. Direct tax
18. Transfer taxes are not
a. Fiscal taxes
valorem taxes
b. Progressive taxes
Transaction taxes
c. Ad
d.
a. Natural person
b. Juridical person
c. Both A and B
d. Neither A nor B
2. Transfer tax on donation inter-vivos
applies to a
a. Natural person
b. Juridical person
c. Both A and B
d. Neither A nor B
3. Which is taxable on all transfers
regardless of location?
19. Transfer taxes are
a. Regressive taxes c. Specific
taxes
b. Indirect taxes
d. Revenue
taxes
20. Who is subject to transfer tax?
a. Transferor
a. Statement 1
c. Both statements
b. Statement 2 d. Neither statement
Multiple Choice – Theory: Part 2
17. Which is not a characteristic of
transfer tax?
a. Privilege tax
b. National tax
Which is incorrect?
c. Transferee
b. Both transferor d. None of these
and transferee
21. Statement 1: All Philippine transfers
are subject to transfer taxes.
Statement 2: All foreign transfers are
subject to transfer taxes.
Which statement is generally correct?
a. Statement 1 c. Both statements
b. Statement 2
d. Neither
statement
22. Statement 1: The amount of transfer
tax is dependent upon the value of the
thing transferred.
Statement 2: Donor’s tax is imposed
upon the properties of a decedent while
estate tax is imposed on a donor.
a. Resident citizen
b. Resident alien
these
c. N-R Citizen
d. All of
4. Which is not subject to estate tax?
a. Resident alien
corporation
b. N-R alien
citizen
c. Domestic
d. Non-resident
5. Which is not subject to transfer tax on
transfer of properties located abroad?
a. Resident citizen
alien
b. Resident alien
citizen
c. Non-resident
d. N-R
6. A non-resident alien is
a. Exempt from transfer taxes.
b. Subject to transfer tax on
Philippine properties.
c. Subject to transfer tax on global
properties.
d. Subject to transfer tax only on
transfers of tangible properties.
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7. Which of the following may be exempt
on transfers on the basis of reciprocity?
a. a. Resident alien c. N-R alien
b. b. N-R citizen
d. B and C
8. Which properties does the reciprocity
exemption cover?
a. Intangible personal property
located abroad
b. Intangible personal property
located in the Philippines
c. Tangible and intangible properties
located abroad
d. Tangible and intangible properties
located in the Philippines
9. Which of the following is an intangible
personal property?
a. Franchise
b. Stocks
c. Bonds
d. All of these
10. Which of these is subject to tax only
on transfers of properties situated in the
Philippines?
a. A citizen of Japan residing in the
Philippines
b. A citizen of the Philippines residing
in Hong Kong
c. A citizen of America residing in
Korea
d. A citizen of the Philippines residing
in the Philippines
a. A and B c. C only
b. B and D d. A, B, and D
12. Which is subject to Donor’s tax?
a.
b.
c.
d.
Donation mortis causa
Donation inter-vivos
Sale for an adequate consideration
Both B and C
13. Which is not a characteristic of a
donation inter-vivos?
a. inspired by the generosity of the
transferor
b. inspired by the thought of
death of the transferor
c. zero consideration
d. insufficiency of consideration
14. Which of these is a donation mortis
causa?
a. Donation in contemplation of death
b. Donation to take effect upon death
c. Revocable donation pre-terminated
by death
d. All of these
15.Which of the following donations
made during the lifetime of the donor is
subject to donor’s tax?
a. Donation inspired by motives
associated with life
b. Donation made during the lifetime
of the decedent inspired by the
thought of the decedent’s death
c. Donation made in contemplation of
death
d. All of these
11. Which of these is taxable on global
transfers of properties?
a. An American residing in the
Philippines
b. A Filipino residing in Malaysia
c. A Sudanese residing in Bahrain
d. A Chinese residing in the
Philippines
16. Which of the following is not a motive
associated with life?
a. To settle family dispute
b. To save on transfer tax
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c. To see children financially
independent
d. To relieve the donor of the burden
of management of the property
17. Donation made on the decedent’s
last will and testament is
a.
b.
c.
d.
donation mortis causa
a donation inter-vivos
subject to income tax.
subject to donor’s tax.
18. Which of the following forms of nontaxable transfers will not be subject to
transfer tax?
a. Void transfer
Incomplete transfer
b. Quasi-transfer
c.
d. A and B
19. Which of the following forms of nontaxable transfers may be subject to
transfer tax in the future?
a. Void transfer
Incomplete transfer
a. Quasi-transfer
these
c.
d. All of
20. Which is incorrect regarding the
taxation of incomplete transfers which
are eventually completed?
a. They are subject to estate tax.
b. They are subject to donor’s tax.
c. They are subject to both donor’s
tax and estate tax.
d. They are subject to either
donor’s tax or estate tax.
21. Which is a complete transfer?
a. Conditional transfer
b. Transfer in contemplation of
death
c. Irrevocable transfers
d. Transfer with reservation of certain
rights until death
22. A conditional donation may be
completed by
a. Fulfillment of the condition
specified by the transferee
b. Waiver of the condition by the
transferor
c. Lapse of the right to revoke
d. A and B
23. Conditional transfers and revocable
transfers which are still pending
completion at the point of the
transferor’s death are
a.
b.
c.
d.
donation inter-vivos
subject to donor’s tax
subject to estate tax.
subject to income tax.
Multiple-Choice – Problems: Part 1
1. Mr. Bonifacio purchased a piece of land
in 2011 for when it was worth P450,000.
He transferred the property when it was
worth P 1,000,000. Subsequently, Mr.
Bonifacio died when the property was
worth P1, 2000,000.
Assuming that the donation is a donation
inter-vivos, what is the value to be
subjected to donor’s tax?
c. P1,000,000
a. P 450,000
b. P 500,000 d. P1,200,00
2. Assuming that the donation is a
donation mortis causa, what is the value
to be subjected to estate tax?
a. P 450,000
c. P1,000,000
b. P 500,000 d. P1,200,000
3. Mang Juan transferred a property with
a fair value of Title to the property was
stipulated to be transferred immediately.
Subsequently, Mang Juan died. The
property was worth P800,000 at the date
of his death.
Which is correct?
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a. The property is subject to donor’s
tax at P1,000,000.
b. The property is subject to donor’s
tax at P800,000.
c. The property is subject to
estate tax at P800,000.
d. The property is subject to estate
tax at P1,000,000.
4. Assume instead that legal title to the
property was reserved by Mang Juan until
death, which is correct?
a. The property is subject to donor’s
tax at P1,000,000.
b. The property is subject to donor’s
tax at P800,000.
c. The property is subject to estate
tax at P800,000.
d. The property is subject to
estate tax at P1,000,000.
5. A resident citizen died leaving the
following property at the point of his
death:
Fair Value
House and
lot
Car
Agricultural
land
Acquisition
Cost
P4,000,00
0
P2,000,000
1,200,000
800,000
2,100,000
500,000
Compute the amount of the donation
mortis causa.
a. P0
a. P1,000,000
b. P1,400,000
c. P4,000,000
d. P4,400,000
7. Assuming the donor is a resident alien,
what is the amount of the donation intervivos?
a. P1,000,000
b. P1,400,000
c. P4,000,000
d. P4,400,000
8. Assuming the donor is a non-resident
citizen, what is the amount of the
donation inter-vivos?
a. P1,000,000
b. P1,400,000
P4,400,000
c. P4,000,000
d.
9. Assuming the donor is a non-resident
alien, what is the amount of the donation
inter-vivos?
a. P1,000,000
b. P1,400,000
P4,400,000
c. P4,000,000
d.
10. Assuming the donor is a non-resident
alien with a reciprocity exemption, what
is the amount of the donation inter-vivos?
a. P1,000,000
b. P1,400,000
P4,400,000
c. P4,000,000
d.
c. P6,900,000
b. P3,700,000
P7,300,000
Multiple-Choice – Problems: Part 2
d.
1. Mr. Chucho decedent died leaving the
following properties:
6. A donor transferred the following
properties on a certain day:
Cash
Land
Car
Assuming the donor is a resident citizen,
what is the amount of the donation intervivos?
Philippines
P400,000
1,000,000
Abroad
P0
3,000,000
Investment
s in Stocks
House and
lot
Residential
lot
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Philippines
P500,000
Abroad
P0
4,000,000
3,000,000
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Assuming Mr. Chucho is a non-resident
citizen or a resident alien, what is the
amount of donation mortis causa?
a. P 0
b. P3,000,000
c. P3,500,000
d. P7,500,000
2. Assuming Mr. Chucho is a non-resident
alien, what is the amount of the donation
mortis causa?
c. P3,500,000
d. P7,500,000
a. P 0
b. P3,000,000
3. Assuming Mr. Chucho is a non-resident
alien and the reciprocity rule applies,
what is the amount of the donation
mortis causa?
a. P 0
b. P3,000,000
c. P3,500,000
d. P7,500,000
4. A seller of goods made the following
sales:
Fair market value.
Selling price.
Cost.
P5,000,000
4,500,000
2,500,000
What is the amount subject to income
tax?
a. P0
b. P1,000,000
c. P1,500,000
d. P2,000,000
5. In the immediately preceding problem,
what is the amount subject to transfer
tax?
a. P0
b. P1,000,000
c. P1,500,000
d. P2,000,000
6. Avalon sold a car. Data relating to the
sale and the car are as follows:
Fair market value. P4,000,000
Selling price.
5,000,000
Cost.
2,500,000
What is the amount subject to income
tax and to transfer tax, respectively?
a. P0; P0
P1,000,000
b. P1,500,00; P0
c. P1,500,00;
d. P0; P2,500,000
7. Mr. Peter madea revocable transfer of
his stock investments on July 4 2020 in
favor of his brother, Merto. Peter died on
December 15, 2020.
The stocks had the following fair values:
July 4, 2020.
P1,200,000
August 20, 2020.
1,100,000
December 15, 2020.
1,600,000
Assuming Peter waived the right to
revoke on August 20, 2020, what is the
amount subject to transfer tax and the
type of transfer tax to apply?
a.
b.
c.
d.
P 1,200,000; donor’s tax
P 1,100,000; donor’s tax
P 1,600,000; donor’s tax
P 1,600,000; estate tax
8. Assuming Mr. Peter did not revoke the
property until the date-of his death, what
is the amount subject to transfer tax and
the type of transfer tax to apply?
a.
b.
c.
d.
P 1,200,000; donor’s tax
P 1,100,000; estate tax
P 1,600,000; donor’s tax
P 1,600,000; estate tax
9. In October 2020, Mrs. Blender
transferred a property to her younger
sister, Careen, subject to the condition
that Careen must graduate in March
2021.
The property was worth P 800,000 in
October 2020 and P 900.000 in March
2021. Mrs. Blender died on July 15, 2021
when the property was worth
P1,200,000.
Assuming that Careen failed to graduate
in March 2021, what is the amount of
donation and the transfer tax to apply?
a. P 800,000; donor’s tax
b. P 900,000; donor’s tax
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c. P 1,200,000; estate tax
d. None; none
10. During his birthday, Mr. Fu Chen
donated the following properties:
Cash donation to his wife
P500,000
Oral donation of house and lot
3,000,000
Compute the taxable amount of donation
inter-vivos.
a. P0
P3,000,000
b. P 500,000
P3,500,000
c.
Assuming that title to the property is
transferred on the date of sale, what is
the amount of donation and the type of
transfer tax to apply?
a.
b.
c.
d.
3. Assuming that title to the property was
agreed upon to take effect on the date of
death, what is the amount of donation
and the type of transfer tax to apply?
a.
b.
c.
d.
d.
P 0; none
P 1,000,000; estate tax
P2,500,000; donor’s tax
P 3,500,000; donor’s tax
P 0; none
P 1,000,000; estate tax
P2,500,000; donor’s tax
P 3,500,000; donor’s tax
Multiple-Choice – Problems: Part 3
1. A resident alien conveyed the
following properties on the following
terms:
Car
Motorcycle
Laptop
Considerati
on
P0
300,000
20,000
Fair Value
P500,000
300,000
80,000
Compute the total amount subject to
transfer tax.
4. The following relate to the disposition
of property made by a seller:
Selling price
P4,200,000
Fair value of property
4,000,000
on date of sale
Fair value at death of the seller
5,000,000
What is the amount subject to donor’s
tax?
a. P 880,000 c. P 500,000
b. P 560,000 d. P 60,000
2. The following relates to a transfer
made by a seller:
Selling price
P1,500,000
Fair value of property at date of sale
4,000,000
Fair value at death of the seller
5,000,000
a. P0.
b. P 200,000
c. P 800,000
d. P 4,000,000
5. Assuming that the transfer is
revocable until the death of the
decedent. Seller, what is the amount
subiect to estate tax?
a. P0.
b. P 200,000
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c. P 800,000
d. P 4,000,000
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6. A donor transferred properties to save
on income taxes. The donation is subject
to
a. Income tax.
b. Donor’s tax
income tax
c. Estate tax.
d. Both
and donor’s tax
7. Mr. B made a revocable donation of a
property valued at P 1,000,000. Which is
a correct statement regarding the
taxation of the donation?
a. The donation shall be subject
to donor’s tax.
b. The donation shall be subject to
estate tax.
c. The donation is subject to income
tax.
d. The donation shall neither be
subject to donor’s tax nor estate
tax.
8. Kumar made an irrevocable donation
of real property during his lifetime in
favor of his wife. Which is true?
a. The donation shall be subject to
donor’s tax.
b. The donation shall be subject to
estate tax.
c. The donation is subject to either
donor’s tax or estate tax.
d. The donation is void and is not
subject to transfer tax.
9. Which of these is not considered within
the Philippines?
d. Stocks of a foreign corporation
with 75% of business in the
Philippines
10. Mr. Ku Loth, transferred a stock
portfolio with a fair value of for P
1,990,000. Ownership shall not transfer
until full payment is made by the
transferee within 10 days. On the 10th
day, the buyer paid the price in full when
the portfolio was worth P2,100,000.
Subsequently, the transferor died when
the stocks were worth
What is the amount subject to transfer
tax and the transfer tax that would
apply?
a. P0; None
b. P 50,000; Donor’s tax
c. P 100,000; Donor’s tax
d. P 1,400,000; Estate tax
11. Anton donated stock securities to his
daughter, Mary, as reward to the latter
for services rendered to Anton. The
property was worth when Anton wrote
the deed of donation. The same had a
value of PI when the donation was
accepted by Mary.
What is the amount of gratuity and the
applicable transfer tax?
a.
b.
c.
d.
P 1,050,000; donor’s tax
P 1,050,000; estate tax
P 1,100,000; donor’s tax
P 1,100,000; estate tax
a. Franchise of a foreign franchisor
which is exercised in the
Philippines
b. Stocks of a domestic corporation
with 60% of business in the
Philippines
c. Foreign shares which are traded in
the Philippine stock market
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12. Mr. Erick received in trust a property
worth P1,400,000. Erick was entrusted to
be the fiduciary heir to the property left
by his mother, Marciana. While still living,
Erick transferred the same property to
his younger brother, Erwin, in accordance
with the will of their mother, Marciana.
The property was worth P 1,500,000 at
the date of transfer.
True or False 1
T
The property is
a. subject to donor’s tax at
P1,500,000
b. subject to estate tax at P1,500,000.
c. subject to donor’s tax at
P1,400,000.
d. exempt from transfer tax
13. Raymund was indebted to Zeus with
a P50,000 interest-bearing loan.
Raymund rendered services worth
P51,500 to Zeus. Zeus cancelled
Raymund’s indebtedness when it was
worth P51,500 including interest.
The cancellation of indebtedness is
a.
b.
c.
d.
Chapter 13 – The Concept of Succession
and Estate Tax
subject to donor’s tax.
subject to estate tax.
exempt from transfer tax.
subject to both donor’s tax and
estate tax.
T
T
F
F
F
T
T
F
F
F
T
T
1. Succession is a mode of
acquisition of property similar to
donation.
2. Inheritance refers to the
property which will be transmitted
to the heirs.
3. The right to succession is
transmitted from the moment of
death of the intestate
4. A decedent with a last will and
testament is said to be intestate.
5. The succession over properties
of a decedent who prepared a will
but covers only a portion of his
estate is called mixed succession.
6. A person who prepared a will is
referred to as the executor.
7. A person who died with a will is
said to be testate.
8. The succession by operation of
law is called intestate succession
9. The will may be prepared by the
heirs of the decedent.
10. The will may be prepared after
the death of the decedent.
11. A testator can designate any
heirs even if in violation of his
legitime.
12. In intestate succession, the
surviving spouse is treated as a
legitimate child qualified for a
share while illegitimate children
are allowed half-share each.
13. The computation of the estate
requires understanding of the
legitime.
True or False 2
F
1. A debt can be inherited by heirs.
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F
T
T
T
F
F
T
T
F
2. Only testamentary dispositions
are subject to estate tax.
3. Successions whether
testamentary, intestate, or mixed
are subject to estate tax.
4. The decedent’s successors in
interest are referred to as the
heirs.
5. With a last will and testament,
the decedent can name any
person which he wants as heir.
6. In testamentary disposition, the
heirs must always be relatives of
the decedent.
7. The secondary compulsory heirs
shall inherit only in default of
concurring heirs.
8. The concurring heirs shall inherit
together with the primary heirs, or
in their default, the secondary
heirs.
9. In default of concurring heirs,
relatives in the collateral line up to
the 5th degree shall inherit.
10. In default of compulsory heirs,
the government shall inherit the
estate of the decedent.
Multiple Choice – Theory 1
1. It is a mode of gratuitous acquisition of
property out of the generosity of a
person
a. Succession
b. Donation
c. Loan
d. None of these
2. It is a mode of gratuitous acquisition of
property by the death of a decedent
a. Donation
b. Succession
c. Inheritance
d. Testate
3. The donor in a donation mortis causa
is
a. dead
dead
b. living
c. either living or
4. Which is not a form of succession?
a. Testamentary
c. Intestate
b. Compulsory
d. Mixed
5. It is succession in the absence of a
will.
a. Testamentary
b. Intestate
c. Mixed
d. None of these
6. It is succession by will and operation of
law.
a. Testamentary
c. Mixed
b. Intestate
d. None of these
7. It is written document which sets forth
how the decedent’s property will be
distributed after death.
a.
b.
c.
d.
Will
Testamentary disposition
Intestate disposition
Mixed
8. Which is not an element of
succession?
a. Decedent
b. Estate tax
c. Estate
d. Heirs
9. It is the property, rights and
obligations of the decedent not
extinguished by his death.
a. Estate
b. Estate tax
c. Codicil
d. Legitime
10. They are the successors in interest of
the decedent.
a. Heirs
b. Estate
c. Devisees
d. Legatees
11. It is a donee of a real property in a
last will and testament.
a. Heir
b. Devisee
d. in a coma
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c. Legatee
d. Successor
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12. It is a donee of personal property in a
last will and testament.
a. Heir
b. Devisee
c. Legatee
d. Successor
13. Who is not a compulsory heir?
a.
b.
c.
d.
An adopted child
Children of a deceased child
The surviving spouse
A brother
14. Who will inherit among the following?
a. legitimate child
c.
Grandchildren
b. Parents
d. First cousin
15. Which of the following heirs will not
inherit?
a. Illegitimate child c. Nephew
b. Surviving spouse d. Legitimate
child
Multiple Choice – Theory 2
a. Grandchild from a deceased son of
the decedent
b. A daughter of the decedent
c. Grandson from a living daughter of
the decedent
d. An illegitimate child of the
decedent
2. Who may not inherit under an
intestate succession?
c. First
d. Best
3. Who will be disinherited from the
following?
c.
d. Parents
4. Who shall inherit from the following
group?
a. Legitimate child
b. Parents
and
c. Grandparents
d. Brothers
sisters
15. Who shall inherit from the following
potential heirs?
a. 1st cousins
sand
c. Niece
nephews
b. Brothers and sisters
d. Second
cousins
6. This is a person appointed by the court
to manage the distribution of the estate.
a. Administrator
b. Executor
c. Guardian
d. Trustee
7. This is a person handpicked by the
decedent to implement his will.
a. Administrator
b. Executor
1. Which will not inherit from the
following group?
a. Grandparents
cousin
b. Grandchildren
friends
a. Widow
Illegitimatechildren
b. Legitimate children
c. Guardian
d. Trustee
8. There are several estate tax laws in
the history of estate taxation in the
Philippines. Which applies to a particular
decedent?
a. The estate tax law in effect when
the properties of the decedent are
being accumulated
b. The estate tax law in effect at the
date of the decedent’s death
c. The estate tax law in effect at
the date the last will and
testament was prepared
d. The estate tax law in effect upon
determination of the legal heirs
B 9. Which is correct regarding estate
tax?
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a. A privilege tax
tax
b. A national tax
tax
c. A final
d. A fiscal
C 10. Statement 1: Succession will not
effect until and unless the estate tax is
paid.
Statement 2: Estate tax is payable even
in the absence of relatives who may
inherit the estate.
Which is correct?
a. a. Statement 1
statements
b. b. Statement 2
statement
c. Both
d. Neither
11. Statement 1: No estate tax is due if
the net taxable estate is negative.
Statement 2: Once there is death, the
estate tax is always payable. Which is
incorrect?
a. Statement 1
statements
b. Statement 2
statement
c. Both
d. Neither
12. Statement 1: A resident citizen is
taxable on his estate wherever situated.
Statement 2: A non-resident citizen is
taxable only on his estate situated in the
Philippines.
Which is correct?
a. Statement 1
statements
b. Statement 2
statement
c. Both
d. Neither
B 13. Statement 1: A resident alien is
taxable only on his estate situated in the
Statement 2: A non-resident alien is
taxable only on his estate situated in
Which is correct?
a. Statement 1
statements
b. Statement 2
statement
c. Both
d. Neither
B 14. The reciprocity exemption on
intangible personal properties situated in
the Philippines is applicable only to a
a.
b.
c.
d.
Non-resident citizen
Non-resident alien
Resident alien
All of these
C 15. Which is correct?
a. Estate tax is determined per piece
of property transferred to the heir.
b. Estate tax is collected by the local
government.
c. Estate tax is a property tax.
d. Estate tax is an excise tax.
C 16. A decedent died intestate with P
1,000,000 net estate. If he has four
legitimate children and two illegitimate
children, how much shall each legitimate
and each illegitimate child respectively
receive?
a.
b.
c.
d.
P 0; P0
P 100; P50,000
P 200,000; P100,000
P166,667; P166,667
B 17. A married decedent died intestate
leaving behind P 1,500,000 of his
separate property and P6,000,000
common properties with his surviving
spouse. If he has three children and one
illegitimate child. How much shall each
legitimate child receive?
a. P 1,666,667
666,667
b. 1,000,000
c. P
d. P 333,333
B 18. In the immediately preceding
problem, compute the total properties of
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the surviving spouse after partition of the
properties.
a. P3,000,000
4,666,667
b. P4,000,000
3,666,667
c. P
d. P
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