When will the transfer of ownership from the decedent to the heir take effect? When should the estate tax accrue? Assume that Naty’s total outstanding liabilities as of the time of her death amounted to P12,000,000. How much of the outstanding liabilities of the decedent should be assumed by Jung?
When will the transfer of ownership from the decedent to the heir take effect? When should the estate tax accrue? Assume that Naty’s total outstanding liabilities as of the time of her death amounted to P12,000,000. How much of the outstanding liabilities of the decedent should be assumed by Jung?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Mrs. Naty Kook suffered from COVID-19 causing her death on November 1, 2020. Her estate composed of the following:
|
Cash in bank |
P1,000,000 |
|
Commercial building |
5,000,000 |
|
Cars |
1,000,000 |
|
House and lot |
3,000,000 |
Jung Kook is the only heir of the decedent. Naty’s remains were cremated on the same day. The executor of Naty’s estate filed the estate tax return and paid the corresponding estate tax on October 31, 2021. The properties left by the decedent were finally distributed to Jung on December 14, 2020.
Answer the following questions:
- When will the transfer of ownership from the decedent to the heir take effect?
- When should the estate tax accrue?
- Assume that Naty’s total outstanding liabilities as of the time of her death amounted to P12,000,000. How much of the outstanding liabilities of the decedent should be assumed by Jung?
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