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Among the properties included in the decedent’s gross estate is a four-story commercial building with a FMV at the time of decedent’s date at P15,000,000. During the settlement of the estate, the aforementioned property was destroyed by fire. The FMV at the time of the incident was P8,350,000. Assume that 60% of the building was destroyed and was not insured. The deductible loss will be? P9,000,000                                                                 P6,000,000 P0                                                                 P6,650,000

Among the properties included in the decedent’s gross estate is a four-story commercial building with a FMV at the time of decedent’s date at P15,000,000. During the settlement of the estate, the aforementioned property was destroyed by fire. The FMV at the time of the incident was P8,350,000. Assume that 60% of the building was destroyed and was not insured. The deductible loss will be? P9,000,000                                                                 P6,000,000 P0                                                                 P6,650,000

FINANCIAL ACCOUNTING
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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Among the properties included in the decedent’s gross estate is a four-story commercial building with a FMV at the time of decedent’s date at P15,000,000. During the settlement of the estate, the aforementioned property was destroyed by fire. The FMV at the time of the incident was P8,350,000. Assume that 60% of the building was destroyed and was not insured. The deductible loss will be?

    1. P9,000,000                                                                 P6,000,000
    2. P0                                                                 P6,650,000
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