After paying the corresponding estate tax, Nicanor inherited a house and lot from his father valued at Php 5,000,000 on February 14, 2018. At the time of his father’s death, the property is mortgaged in the amount of Php 1,000,000. On October 6, 2021, Nicanor died. The details of Nicanor’s estate are reflected below: Real properties and personal properties personally owned by Nicanor – Php 5,000,000House and lot Nicanor inherited from his father:BIR Zonal value – Php 3,000,000Value per Tax Declaration: Land – Php 2,000,000House – Php 4,000,000 The following are expenses / deductions paid/payable attributable to the estate at the time of his death:Outstanding balance of the mortgage on his father’s property – Php 400,000Unpaid mortgage on Nicanor’s properties – Php 500,000Losses – Php 500,000Total unpaid taxes – Php 100,000 Claims by hospitals on unpaid medical bills – Php 500,000Donation to the City Government for Public Use – Php 500,000 How much is the total allowable (ordinary and special) deductions on the estate of Nicanor?

There are two types of expenses or claims against an estate that can be used to figure out how much…

Answered: After paying the corresponding estate…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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After paying the corresponding estate tax, Nicanor inherited a house and lot from his father valued at Php 5,000,000 on February 14, 2018. At the time of his father’s death, the property is mortgaged in the amount of Php 1,000,000. On October 6, 2021, Nicanor died. The details of Nicanor’s estate are reflected below:

Real properties and personal properties personally owned by Nicanor – Php 5,000,000

House and lot Nicanor inherited from his father:

BIR Zonal value – Php 3,000,000

Value per Tax Declaration:

Land – Php 2,000,000
House – Php 4,000,000

The following are expenses / deductions paid/payable attributable to the estate at the time of his death:

Outstanding balance of the mortgage on his father’s property – Php 400,000
Unpaid mortgage on Nicanor’s properties – Php 500,000
Losses – Php 500,000
Total unpaid taxes – Php 100,000
Claims by hospitals on unpaid medical bills – Php 500,000
Donation to the City Government for Public Use – Php 500,000

How much is the total allowable (ordinary and special) deductions on the estate of Nicanor?

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