Record the following annuity and life income activities of Private University:

1. On July 1, 2019, R. W. Fields, emeritus professor of accounting, moved out of the state. Fields donated to the university common stock with a cost basis of $40,000 and a fair value of $90,000. Fields is to receive an annuity of $6,000 each year for life; at death, the securities are to be sold and the remaining cash balance is to be transferred to the student loan fund. At a 10% annual rate and a life expectancy of 12 years, the present value of the annuity payments is $34,068.
2. The stock paid $2,000 in dividends each 12-month period.
3. The annuities payable account is adjusted to present value. At year-end, a payment of $6,000 is made to Professor Fields.
4. The annuities payable account is adjusted to present value. A second payment was made a year later.
5. A month later, Professor Fields died, eliminating the liability for future annuity payments.
6. The common stock was sold for $92,000. The cash balance was transferred to the student loan fund.