MONTOJO, DAVID SAMUEL L.

BSBA – OM III MAY 11, 2021

BUSINESS AND TRANSFER TAX
Solve the problems below and show your solution.
1. Mr. and Mrs. Roces had the following personal properties:
Acquired before marriage:
Tuxedo of Mr. Roces P 4,500
Wrist watch of Mr. Roces 25,000
Car of Mr. Roces 1,200,000
Gown of Mrs. Roces 60,000

Required:

Acquired during marriage:

Earrings and Necklace of Mrs. Roces P 225,000
Cellphone of Mr. Roces 40,000
Cellphone of Mrs. Roces 30,000
Louis Vuitton bag of Mrs. Roces 250,000
Clothes, shoes and under wear of Mr. Roces 150,000
Clothes, shoes and underwear of Mrs. Roces 200,000

Determine the amount of the following:

A. Exclusive Personal Properties of Mr. Roces
Tuxedo of Mr. Roces P 4,500
Clothes, shoes and under wear of Mr. Roces 150,000
Total P 154,500
B. Exclusive Personal Properties of Mr. Roces
Gown of Mrs. Roces P 60,000
Louis Vuitton bag of Mrs. Roces 250,000
Clothes, shoes and underwear of Mrs. Roces 200,000
Total P 510,000
C. Common Personal Properties of Mr. and Mrs. Roces
Wrist watch of Mr. Roces P 25,000
Car of Mr. Roces 1,200,000
Cellphone of Mr. Roces 40,000
Cellphone of Mrs. Roces 30,000
Earrings and necklace of Mrs. Roces 225,000
Total P 1,520,000
2. Mr. Fernan Dow, a non-resident Australian, died in Singapore. Mr. Dow and his wife
had the following properties:

Australia Philippines Singapore Total

Capital properties P 200,000 P 400,000 P 600,000 P 1,200,000
Paraphernal 500,000 700,000 1,200,000 2,400,000
properties
Common properties- 1,100,000 400,000 400,000 1,900,000
tangible
Common properties- 1,000,000 300,000 1,300,000
intangible
Total P 1,800,000 P 2,500,000 P 2,500,000 P 7,000,000
*
Required:

A. What is the gross estate of Mr. Dow assuming that the reciprocity rule does not
apply?

Philippines
Capital properties P 400,000
Common properties-tangible 400,000
Common properties-intangible 1,000,000
Total P 1,800,000

B. What is the gross estate of Mr. Dow assuming that the reciprocity rule applies?
Philippines
Capital properties P 400,000
Common properties-tangible 400,000
Total P 800,000