Solution Manual A Basic Approach to Transfer Taxes

2006 EDITION

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Solution Manual A Basic Approach to Transfer Taxes

SUGGESTED ANSWERS
Partial Solution
A Basic Approach to Transfer
& Business Taxes
By: R.C. GLORIA & R. L. REYES

Learning Exercises – Chapters 1 through 3 (Page 13)

II. True or False Questions

1. True 10. False 19. True 28. False

2. False 11. False 20. False 29. False
3. False 12. True 21. True 30. True
4. False 13. False 22. True
5. True 14. True 23. True
6. True 15. False 24. True
7. True 16. True 25. True
8. False 17. True 26. True
9. False 18. False 27. True

III. Multiple Choice Questions (Page 15)

1. B 08. D 15. C 22. C

2. A 09. B 16. A 23. D
3. D 10. D 17. D 24. B
4. C 11. B 18. A 25. C
5. D 12. B 19. D 26. C
6. D 13. A 20. B 27. D
7. C 14. B 21. A 28. A

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Solution Manual A Basic Approach to Transfer Taxes

IV. Problems (Page 20)

(A) Estate tax due:
1. P200,000 P -0-
150,000 x 5% 7,500
P350,000 P7,500
2. P500,000 P15,000 5. P2,000,000 P135,000
10,000 x 8% 800 250,000 x 11% 27,500
P510,000 P15,800 P2,250,000 P162,500
3. P500,000 P15,000 6. P2,000,000 P135,000
250,000 x 8% 20,000 2,750,000 x 11% 302,500
P750,000 P35,000 P4,750,000 P437,500
4. P 500,000 P 15,000 7. P2,000,000 P135,000
1,475,000 x 8% 118,000 3,000,000 x 11% 330,000
P1,975,000 P133,000 P5,000,000 P465,000

8. P5,000,000 P 465,000 9. P10,000,000 P1,215,000

4,400,000 x 15% 660,000 2,000,000 x 20% 400,000
P9,400,000 P1,125,000 P12,000,000 P1,615,000

10. P10,000,000 P1,215,000

5,000,000 x 20% 1,000,000
P15,000,000 P2,215,000

(B) Estate tax payable:

No Estate Tax Due (A) Tax Credit (B) Tax Payable (A - B)

.
1. P 15,000 P 9,000 P 6,000
2. P135,000 P81,875 P53,125
3. P 55,000 P27,000 P28,000
4. P 55,000 P33,000 P22,000

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Solution Manual A Basic Approach to Transfer Taxes

V. Multiple Choice Quizzer (Page 20-A)

1. C 6. D 11. A
2. C 7. D 12. B
3. C 8. D 13. D
4. B 9. B 14. C
5. D 10. A 15. C

VI. True or False Quizzer (Page 20-D)

1. True 6. True
2. False 7. False
3. False 8. True
4. False 9. True
5. True 10. True

Learning Exercises – Chapters 4 and 5

II. True or False Questions 1 (Page 55)

1. False 6. True 11. True

2. False 7. False 12. False
3. True 8. False 13. True
4. True 9. True 14. True
5. True 10. False 15. False

III. True or False Questions 2 (Page 56)

1. True 6. True 11. False

2. True 7. True 12. False
3. True 8. False 13. True
4. True 9. False 14. True
5. False 10. True 15. True

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Solution Manual A Basic Approach to Transfer Taxes

IV. True or False Questions 3 (Page 57)

1. False 6. True 11. False

2. True 7. True 12. True
3. True 8. True 13. False
4. False 9. False 14. False
5. True 10. False 15. True

V. True or False Questions 4 (Page 58)

1. True 6. False 11. True 16. True 21. True

2. True 7. True 12. False 17. False 22. False
3. True 8. False 13. True 18. False 23. False
4. False 9. False 14. False 19. False 24. False
5. True 10. True 15. True 20. False 25. True

VI. Matching Type Questions 1 (Page 60)

1. G 4. B 7. F 10. A
2. I 5. L 8. C
3. H 6. J 9. K

VII. Multiple Choice Questions 1 (Page 61)

1. B 6. B 11. C 16. B
2. C 7. C 12. D 17. D
3. B 8. D 13. D 18. C
4. C 9. B 14. D 19. C
5. D 10. C 15. B or D 20. D

VIII. Multiple Choice Questions 2 (Page 67)

1. D 7. D 13. B 19. B 25. C

2. D 8. B 14. D 20. D 26. A
3. B 9. D 15. D 21. D 27. A
4. A 10. C 16. D 22. A 28. B
5. A 11. C 17. C 23. C 29. C

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Solution Manual A Basic Approach to Transfer Taxes
6. B 12. D 18. D 24. D 30. A

IX. Multiple Choice Questions 3 (Page 73)

1. C 6. D 11. C 16. D 21. D

2. A 7. B 12. D 17. B 22. D
3. C 8. D 13. A 18. D 23. C
4. D 9. D 14. A 19. C 24. B
5. D 10. D 15. D 20. A 25. A

X. Multiple Choice Questions 4(Page 79)

1. D 9. B 17. C 25. B
2. C 10. D 18. C 26. C
3. C 11. D 19. C 27. C
4. D 12. D 20. B 28. C
5. D 13. C 21. C 29. D
6. C 14. D 22. B 30 A
7. B 15. D 23. A
8. A 16. B 24. C

XI. Identification Questions (Page 88)

Classification of Property under:

15. Conjugal Partnership of Gains
(B) Absolute Community of Property

(A) (B) (A) (B)

1. Exclusive Common 11. Common Common
2. Exclusive Exclusive 12. Common Common
3. Exclusive Common 13. Exclusive Common
4. Common Common 14. Exclusive Common
5. Exclusive Common 15. Common Common
6. Common Common 16. Exclusive Exclusive
7. Exclusive Exclusive 17. Common Exclusive
8. Exclusive Common 18. Common Common
9. Common Common 19. Exclusive Exclusive
10. Common Common 20. Common Common

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Solution Manual A Basic Approach to Transfer Taxes

LEARNING EXERCISES FOR CHAPTER 6

True or False Questions 6-1 (Page 93)

Answers
1. False
2. True
3. True
4. False
5. False
6. True
7. False
8. True
9. False
10. False
11. True
12. True

15. Multiple Choice Questions 6-1 (Page 94)

Answers
1. B
2. D
3. B
4. B
5. B
6. D
7. D
8. B
9. C
10. B
11. B
12. C
13. D
14. D
15. D

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Solution Manual A Basic Approach to Transfer Taxes

LEARNING EXERCISES FOR CHAPTER 8-10

II. Identification (Page 143)

Answers
1. Donation
2. Donor
3. Donee
4. Donation inter-vivos
5. Donation mortis causa
6. Donor’s tax
7. Real property
8. 30%
9. Dowry
10. Relatives or strangers Elements of a
11. Donor valid donation
12. Tax credit
 Donative
13. Please see the opposite list  intent of donor
14. Conjugal donations  Capacity of
15. Donation of intangible personal property donor
made by a nonresident alien donor  Delivery of gift
 Acceptance by
III. True or False Questions (Page 144) the donee

Answers
1. False
2. False
3. False
4. True
5. False
6. True
7. True
8. False
9. False
10. True
11. True
12. False
13. False

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Solution Manual A Basic Approach to Transfer Taxes
14. False
15. False

IV. Multiple Choice Questions 7-1 (Page 145)

Answers
1. B
2. D
3. B
4. A
5. D
6. A
7. C
8. A
9. A
10. D

V. Multiple Choice Questions 7-2 (Page 149)

Answers Answers
1. C 8. D
2. D 9. B
3. C 10. D
4. D 11. B
5. A 12. C
6. A 13. A
7. B 14. A

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Solution Manual A Basic Approach to Transfer Taxes

ADDITIONAL LEARNING EXERCISES

Test Materials 1 (Page 168)
1. D 6. B 11. D
2. B 7. D 12. C
3. D 8. D 13. D
4. A 9. C 14. D
5. C 10. A 15. A

Test Materials 2 (Page 172)

1. D 6. A 11. B 16. D
2. A 7. C 12. D 17. C
3. C 8. C 13. B
4. D 9. A 14. B
5. A 10. D 15. A

Test Materials 3 (Page 176)

1. D 6. B 11. A
2. D 7. C 12. B
3. D 8. D
4. D 9. B
5. D 10. A

Test Materials 4 (Page 179)

1. B 6. B 11. A 16. C
2. A 7. A 12. B
3. A 8. C 13. C
4. D 9. A 14. D
5. C 10. A 15. C

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Solution Manual A Basic Approach to Transfer Taxes

Identification Quizzer (Page 121)

1. Testator 14. Heir or successor

2. Succession 15. Estate tax
3. Estate 16. Succession
4. Legatee 17. Donation mortis causa
5. Intestate Succession 18. Devisee
6. Estate tax 19. Reciprocity rule or clause
7. Legitime 20. Capital
8. Transfer mortis causa 21. Power of appointment
9. Revocable transfer 22. Decedent
10. Inadequate consideration 23. Administrator
11. Donor’s tax 24. Revocable transfer
12. Heirs or successors 25. Intestate succession
13. Vanishing deduction

To Our Valued Clients:

The rest of the solutions to other (new) revised problems will be

available soon. We apologize for the delay.

The Authors

For immediate inquiries, you may contact Mr. Gloria at Tel. Nos.
(046) 412-1356; (0921) 970-8459; (0921) 760-3094.

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Solution Manual A Basic Approach to Transfer Taxes

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