Fair Value of Receivables and Domicile of Debtors Quiz
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Questions and Answers

For loans and receivables, the fair value is generally calculated as what?

  • The market value of the receivable on the date of transfer
  • The amount fixed in the contract including accrued income thereto (correct)
  • The fair value at the point of death
  • The net book value of the receivable

    • What is the situs (location) of a real property donated by a person in Australia to a Japanese living in the United States, if the property is located in Cebu, Philippines?

  • Australia
  • Japan
  • Philippines (correct)
  • United States

    • For the purpose of computing the gross estate, what value should be used when a real property has a zonal value of P5,000,000, assessed value of P3,500,000, and net book value of P6,000,000?

  • The average of the three values
  • Zonal value of P5,000,000 (correct)
  • Assessed value of P3,500,000
  • Net book value of P6,000,000

    • Which of the following properties transferred by Mario via succession would be considered to have a business situs in the Philippines?

    <p>Bonds issued by a foreign corporation but 60% of the business is operating in the Philippines</p> Signup and view all the answers

    Which of the following properties transferred by Mario via succession would be considered to have a business situs outside the Philippines?

    <p>HSBC account (Hong Kong Branch)</p> Signup and view all the answers

    Which of the following properties transferred by Mario via succession would be considered to have a business situs in the Philippines?

    <p>Bonds issued by a foreign corporation but acquired business situs in the Philippines</p> Signup and view all the answers

    What is the general rule for valuing the right of usufruct for estate tax purposes?

    <p>The probable life of the beneficiary based on the latest mortality table</p> Signup and view all the answers

    What is the general rule for valuing shares of stock for estate tax purposes?

    <p>The arithmetic mean between the highest and lowest quotation on the date nearest to the date of death</p> Signup and view all the answers

    How should shares of stock issued by a foreign corporation be valued for estate tax purposes?

    <p>The shares, obligations, or bonds shall be considered located outside the Philippines unless at least 85% of the business is located in the Philippines</p> Signup and view all the answers

    How should bank deposits be valued for estate tax purposes?

    <p>The peso value translated using the prevailing exchange rate at the date of death</p> Signup and view all the answers

    What is the valuation method for preferred stocks issued by a domestic enterprise for estate tax purposes?

    <p>Par value</p> Signup and view all the answers

    What is the valuation method for ordinary stocks issued by a domestic enterprise for estate tax purposes?

    <p>Book value using the adjusted net asset method</p> Signup and view all the answers

    What does the gross estate consist of?

    <p>All properties and interests of the decedent at the time of death</p> Signup and view all the answers

    Where is real property situs determined for estate taxation purposes?

    <p>Based on where the property is located at the point of death</p> Signup and view all the answers

    How should bonds be considered for valuation in the Philippines?

    <p>Using the fair value per provincial/city assessor's office</p> Signup and view all the answers

    If fair value is not determinable, what cost should be used for brand-new property?

    <p>Acquisition cost</p> Signup and view all the answers

    Where should intangible property be considered to be exercised for valuation purposes?

    <p>At the point of death</p> Signup and view all the answers

    How should participation in clubs or associations be valued for estate taxation purposes?

    <p>At the bid price nearest to the date of death</p> Signup and view all the answers

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