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Problem 4
Al, decedent, had the following data at the time of his death on July 20, 2013:
Prior decent – father Present decedent
Car P250,000 P 200,000
Land 500,000 900,000
The land had an unpaid mortgage of P300,000 at the time it was inherited from his father on
January 5, 2010. Al was able to pay P200,000 before his death. The gross estate of Al was
P4,000,000 while the expenses amount to P900,000 broken down as follows:
Actual funeral expenses P 175,000
Claims against the estate 3 0,000
Claims against insolvent persons 20,000
Transfer to City of Manila for public purpose 50,000
Medical expenses 545,000
RA 4917 80,000
Included in the gross estate is his family home. It was purchased on Feb. 2012 at P1.8M. At the
time of his death, it had a value of P2,000,000
9. The amount of vanishing deduction is—
A. 77,500 C. 173,125
B. 90,625 D. 181,250