1. I.

The deductions from the gross state are valued at the fair market value at the time of filing
and paying the estate tax.

II. Outstanding obligations by a person during his lifetime are terminated upon death.

a. Only statement 1 is true

b. Only statement 2 is true
c. Both statements are correct
d. Both statements are incorrect

2. I. Deductions from the gross estate are allowed to protect the interest of the innocent third
party who have claims over the properties of the decedent

II. The claims against an insolvent person are deductible only If included in the gross estate.

a. Only statement 1 is true

b. Only statement 2 is true
c. Both statements are correct
d. Both statements are incorrect

3. I. The share of the surviving spouse is a special deduction.

II. Donations to foreign government are deductible from gross estate.

a. Only statement 1 is true

b. Only statement 2 is true
c. Both statements are correct
d. Both statements are incorrect

4. I. A vanishing deduction is not allowed for the current decedent if his immediate predecessor
deducted the same from his gross estate.

II. Property tax not accrued before the decedent’s death is deductible from the gross estate.

a. Only statement 1 is true

b. Only statement 2 is true
c. Both statements are correct
d. Both statements are incorrect
5. I. The share of the surviving spouse in the estate shall be deducted equal to ½ of the gross
conjugal property.

II. Standard deductions are in lieu of actual itemized deductions from the gross estate.

a. Only statement 1 is true

b. Only statement 2 is true
c. Both statements are correct
d. Both statements are incorrect

6. I. All claims against the insolvent person are deductible from the decedent’s gross estate.

II. Estate tax is deductible from the gross estate to determine the taxable base.

a. Only statement 1 is true

b. Only statement 2 is true
c. Both statements are correct
d. Both statements are incorrect
7. Deduction from the gross taxable estate are broadly classified as follows except:
a. Ordinary deduction
b. Special deduction
c. Share of the surviving spouse
d. Amount exempted from tax
8. These decedents with properties located outside the Philippines are entitled to tax credit except
a. Resident citizen
b. Resident alien
c. Non resident alien
d. Non resident citizen
9. The following taxes are not deductible against the gross estate except
a. Income tax on compensation income prior to the decedent’s death
b. Estate tax
c. Property tax accruing after death
d. Income tax on business earned after death
10. Under NIRC, the notice of death shall be filed_________________________.