Practice question
For a covered transaction, the applicable approved-SMV amounts are stipulated as PHP 1,000,000 land, PHP 200,000 legally determined replacement component already accounting for depreciation, and PHP 100,000 crops. With no other components, what deposit follows the amended percentages?
- PHP 195,000.
- PHP 1,300,000 automatically.
- PHP 30,000.
- PHP 365,000.
- Zero because improvements exist.
Legal references
- RA 12289, Sections 3 and 7-8, amending RA 10752 coverage and its renumbered Sections 7-8 on possession and valuation: https://elibrary.judiciary.gov.ph/thebookshelf/showdocs/2/99855
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