A decedent owns 25,000 stocks in a closely-held corporation, which had the following equity structure at the date of death of the decedent: Common stocks (1,000,000 outstanding shares) P5,000,000 Additional paid-in capital 2,000,000 Retained earnings 1,000,000 Total shareholder’s equity P 8,000,000 Which of the following is the value of the stocks to be included in the gross estate? a. P 0 b. P125,000 c. P175,000 d. P200,000

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