The executor of Gina Purcells estate has recorded the following information: Assets discovered at death (at fair
Question:
The executor of Gina Purcell’s estate has recorded the following information:
Assets discovered at death (at fair value):
Cash . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $600,000
Life insurance receivable . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 200,000
Investments:
Walt Disney Company . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 11,000
Polaroid Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 27,000
Ford Motor Company . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34,000
Dell Computer Corporation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32,000
Rental property . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .300,000
Cash outflows:
Funeral expenses . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 21,000
Executor fees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12,000
Ordinary repairs of rental property . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,000
Debts . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 81,000
Distribution of income to income beneficiary . . . . . . . . . . . . . . . . . . . . . . . 4,000
Distribution to charitable remainder trust . . . . . . . . . . . . . . . . . . . . . . . . . 300,000
Cash inflows:
Sale of Polaroid stock . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 30,000
Rental income ($4,000 earned prior to death) . . . . . . . . . . . . . . . . . . . . . .. 11,000
Dividend income ($2,000 declared prior to death) . . . . . . . . . . . . . . . . . . .12,000
Life insurance proceeds . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .200,000
Debts of $17,000 still remain to be paid. The Dell shares have been conveyed to the appropriate beneficiary. Assume that Ms. Purcell’s will stated that all executor fees are to be paid from principal.
Prepare an interim charge and discharge statement for this estate.
CorporationA Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...
Step by Step Answer:
Advanced Accounting
ISBN: 9781260247824
14th Edition
Authors: Joe Ben Hoyle, Thomas Schaefer, Timothy Doupnik