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Facts: A Philippine resident decedent dies, leaving the following properties: (i) real property in Cebu City valued at ₱4,000,000; (ii) bank deposits ₱2,400,000; (iii) a motor vehicle valued at ₱600,000; (iv) a life insurance policy on the decedent’s life with proceeds of ₱900,000 payable to the decedent’s estate; (v) shares of stock in a domestic corporation valued at ₱1,100,000. Burial expenses incurred and paid by the estate amount to ₱180,000. The decedent’s surviving spouse and two children are the heirs. Assume the estate tax exemption is ₱5,000,000. Question: Based on the basic principles and concepts of estate tax, (a) state the controlling doctrine and the basis of the levy; (b) distinguish gross estate from net estate and indicate which items are included in gross estate and which are deductible from gross estate; (c) apply the facts: determine the gross estate, the deductions, the net estate, the taxable estate, and whether estate tax would apply, explaining your answer.