Exam 19: Accounting for Estates and Trusts

The executor of Danny Mack's estate has listed the following properties at fair value: Cash $200,000, Life Insurance Receivable $500,000, Investment in Stocks and Bonds $50,000, Rental Property $100,000, and Personal Property $80,000. Additionally, the executor found $100,000 of various debts incurred before the decedent's death. The cost of Danny Mack's funeral was $20,000. -Prepare the journal entry to record the property of the estate.

A gift that is specified in a will as "I leave my collection of baseball cards to my son" is a

The executor of the Estate of Kate Tweed discovered the following assets (at fair value): The will of Kate Tweed had the following provisions: -$195,000 in cash went to Victor Vickery. -All shares of PepsiCo went to Duchess Doyle. -The residence went to Louis Tweed. -All other estate assets were to be liquidated with the resulting cash going to the Sacred Church of Liberty, Missouri. -Prepare the journal entry to record the property of the estate.

Which of the following is not normally viewed as an adjustment to the principal of an estate?

The executor of Danny Mack's estate has listed the following properties at fair value: Cash $200,000, Life Insurance Receivable $500,000, Investment in Stocks and Bonds $50,000, Rental Property $100,000, and Personal Property $80,000. Additionally, the executor found $100,000 of various debts incurred before the decedent's death. The cost of Danny Mack's funeral was $20,000. -Prepare the journal entry to record the sales of the stocks and bonds for $120,000

What is meant by estate accounting?

A gift that is specified in a will as "I leave $5,000 in cash to my son" is a

In a will, a devise is a

The executor of the Estate of Kate Tweed discovered the following assets (at fair value): The will of Kate Tweed had the following provisions: -$195,000 in cash went to Victor Vickery. -All shares of PepsiCo went to Duchess Doyle. -The residence went to Louis Tweed. -All other estate assets were to be liquidated with the resulting cash going to the Sacred Church of Liberty, Missouri. -The shares of Apple were sold for $145,600.Prepare the journal entry to record the transaction.

Assume that Bob Smith dies on May 25, 2018.Mr.Smith's assets include the following: ABC Stock costing $30,000 but valued at $40,000; a house costing $280,000 but valued at $620,000; life insurance in the amount of $600,000; and cash from various sources totaling $50,700.Three credit cards in Mr.Smith's name had balances totaling $8,530 on the date of death.The estate paid funeral and final medical expenses in the amount of $50,492.There were no charitable gifts designated by the will, and Mr.Smith was single at the time of his death.What is the amount of the taxable estate?

What choices does an executor of an estate have in determining the values of assets included in the estate for tax purposes?

The executor of the Estate of Kate Tweed discovered the following assets (at fair value): The will of Kate Tweed had the following provisions: -$195,000 in cash went to Victor Vickery. -All shares of PepsiCo went to Duchess Doyle. -The residence went to Louis Tweed. -All other estate assets were to be liquidated with the resulting cash going to the Sacred Church of Liberty, Missouri. -Assuming an additional savings account of $15,600 was located by the executor, prepare the journal entry required to record the transaction.

Which of the following is normally viewed as an adjustment to the principal of an estate?

The executor of the Estate of Kate Tweed discovered the following assets (at fair value): The will of Kate Tweed had the following provisions: -$195,000 in cash went to Victor Vickery. -All shares of PepsiCo went to Duchess Doyle. -The residence went to Louis Tweed. -All other estate assets were to be liquidated with the resulting cash going to the Sacred Church of Liberty, Missouri. -For the Estate of Kate Tweed, a total amount of interest of $9,100 was collected. Prepare the journal entry to record the collection.

A gift of any remaining estate property is a

The executor of Danny Mack's estate has listed the following properties at fair value: Cash $200,000, Life Insurance Receivable $500,000, Investment in Stocks and Bonds $50,000, Rental Property $100,000, and Personal Property $80,000. Additionally, the executor found $100,000 of various debts incurred before the decedent's death. The cost of Danny Mack's funeral was $20,000. -Prepare the journal entry for claims of $100,000 made against the estate for various debts incurred before the decedent's death, and $20,000 for funeral expense bills.

What are the three goals of probate laws?

What are the goals of probate laws? (1) Gather and preserve all of the decedent's property (2) Carry out an orderly and fair settlement of all debts (3) Discover and follow the decedent's intent for the remaining property

What is the remaining principal to be divided equally between the son and the daughter?

The executor of Danny Mack's estate has listed the following properties at fair value: Cash $200,000, Life Insurance Receivable $500,000, Investment in Stocks and Bonds $50,000, Rental Property $100,000, and Personal Property $80,000. Additionally, the executor found $100,000 of various debts incurred before the decedent's death. The cost of Danny Mack's funeral was $20,000. -Prepare the journal entry to record payment of $20,000 in funeral expenses.