The executor of Gina Purcells estate has recorded the following information: Assets discovered at death (at fair

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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.

Corporation
A 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...
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Related Book For  answer-question

Advanced Accounting

ISBN: 9781260247824

14th Edition

Authors: Joe Ben Hoyle, Thomas Schaefer, Timothy Doupnik

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