What is the correct answer to the problem? Identify how much is the vanishing deduction of the decedent. Show solution.
What is the correct answer to the problem? Identify how much is the vanishing deduction of the decedent. Show solution.
Chapter27: The Federal Gift And Estate Taxes
Section: Chapter Questions
Problem 37P
Related questions
Question
What is the correct answer to the problem? Identify how much is the vanishing deduction of the decedent. Show solution.
Transcribed Image Text:A decedent married on June 5, 2017 died on April 29, 2019 with his gross
estate comprising of community property of P3,000,000 and exclusive
property of P2,000,000. Included in his gross estate a land which he
received as a gift from his father a month before marriage valued at
P540,000. His father mortgaged the land for P20,000 which was paid by
the decedent. The decedent also mortgaged the said land for P50,000
but was able to pay only P20,000 until his death. Expenses claimed
(excluding the unpaid mortgage) amounted to P170.000.
The vanishing deduction is
A
B
C
D
None
380,000
384,000
388,800
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Recommended textbooks for you
Individual Income Taxes
Accounting
ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Individual Income Taxes
Accounting
ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT