In 1999, Xavier purchased from his friend, Yuri, a painting for P500,000.00. The fair market value (FMV) of the painting at the time of the purchase was P1-million. Yuri paid all the corresponding taxes on the transaction. In 2001, Xavier died. In his last will and testament, Xavier bequeathed the painting, already worth P1.5-million, to his only son, Zandro. The will also granted Zandro the power to appoint his wife, Wilma, as successor to the painting in the event of Zandro's death. Zandro died in 2007, and Wilma succeeded to the property. Should the painting be included in the gross estate of Xavier in 2001 and thus, be subject to estate tax? Explain. Should the painting be included in the gross estate of Zandro in 2007 and thus, be subject to estate tax? Explain. May a vanishing deduction be allowed in either or both of the estates? Explain.