How much is assumed collectible from the debtor How much should be included as part of the
Question:
How much is assumed collectible from the debtor
How much should be included as part of the gross estate of Mr. San Diego.
1. Mr. San Diego's debtor suffered extreme financial setback that he as frank enough to tell Mr. San Diego that he can no longer pay the P 1,500,000 money he borrowed. Nevertheless, he still has P 4.5 million in assets but has P 13.5 million outstanding debts. Even before Mr. San Diego died, he was already declared insolvent.
a.
2. Five years ago , Mr. Sto. Nino lent his friend-debtor P 300,000 evidenced by a note. They mutually agreed that 20% simple interest per annum shall be charged. Exactly 5 years later, Mr. Sto. Nino died. How much is the value to be included in the gross estate of Mr. Sto. Nino?
3. Mr. Sto Nino died holding 9,000 shares issued by ABC Inc.. At the time of death, the highest quotation of the stock exchange for each share was P 250 while the lowest P 150. How much is the value to be included in the gross estate of Mr. Sto. Nino.
Financial Accounting Information For Decisions
ISBN: 978-0324672701
6th Edition
Authors: Robert w Ingram, Thomas L Albright