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What is the correct answer to the problem? Identify how much is the vanishing deduction of the decedent. Show solution.

What is the correct answer to the problem? Identify how much is the vanishing deduction of the decedent. Show solution.

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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What is the correct answer to the problem? Identify how much is the vanishing deduction of the decedent. Show solution. 

A decedent married on June 5, 2017 died on April 29, 2019 with his gross estate comprising of community property of P3,000,000 and exclusive property of P2,000,000. Included in his gross estate a land which he received as a gift from his father a month before marriage valued at P540,000. His father mortgaged the land for P20,000 which was paid by the decedent. The decedent also mortgaged the said land for P50,000 but was able to pay only P20,000 until his death. Expenses claimed (excluding the unpaid mortgage) amounted to P170.000. The vanishing deduction is A B C D None 380,000 384,000 388,800
Transcribed Image Text:A decedent married on June 5, 2017 died on April 29, 2019 with his gross estate comprising of community property of P3,000,000 and exclusive property of P2,000,000. Included in his gross estate a land which he received as a gift from his father a month before marriage valued at P540,000. His father mortgaged the land for P20,000 which was paid by the decedent. The decedent also mortgaged the said land for P50,000 but was able to pay only P20,000 until his death. Expenses claimed (excluding the unpaid mortgage) amounted to P170.000. The vanishing deduction is A B C D None 380,000 384,000 388,800
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