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Facts: A Philippine resident decedent dies, leaving: (i) real property in Cebu City valued at ₱4,200,000; (ii) a bank deposit of ₱1,800,000; (iii) a motor vehicle valued at ₱550,000; (iv) a life insurance policy on the decedent’s life with proceeds of ₱750,000 payable to the decedent’s estate; (v) shares of stock in a domestic corporation valued at ₱1,000,000. Burial expenses paid by the estate amount to ₱120,000. The decedent’s surviving spouse and two children are the heirs. Assume the estate tax exemption is ₱5,000,000. Question: Based on basic principles of estate tax, determine (i) gross estate, (ii) deductions, (iii) net estate, (iv) taxable estate, and (v) whether estate tax would apply. Choose the option that correctly states these amounts and conclusion.