Jose Ramos, single, died of a heart attack on October 10, 2011, leaving a residential house and lot with a market value of P1.8 Million and cash of…

The question

Jose Ramos, single, died of a heart attack on October 10, 2011, leaving a residential house and lot with a market value of P1.8 Million and cash of P100,000.00. Funeral expenses paid amounted to P250,000.00. (2012 Bar Question)

1. A.His estate will be exempt from estate tax because the net estate is zero;
2. B.His estate will be subject to estate tax because net estate is P1,650,000.00;
3. C.His estate will be subject to estate tax because net estate is P1,700,00.00;
4. D.His estate will be subject to estate tax because net estate is P800,000.00.

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