Deck 19: A: Accounting for Estates and Trusts

Question 1

When a person dies without leaving a valid will, how is the distribution of his or her property determined?

A) In accordance with federal inheritance laws.
B) In accordance with generally accepted accounting principles.
C) In accordance with a plan developed by the executor of the estate.
D) In accordance with state inheritance laws.
E) In accordance with common law.

Answer 1

D

Question 2

A testamentary trust is a trust

A) Intended to protect the assets of a minor.
B) That is managed by the trustor.
C) That is managed by an estate.
D) Established by a living person.
E) Established by a will.

Answer 2

E

Question 3

The trustor is the

A) Income beneficiary of the trust.
B) Ultimate recipient of the principal from the trust.
C) Fiduciary who manages the assets in the trust.
D) Person who funds the trust.
E) Person who disposes of the assets in the trust.

Answer 3

D

Question 4

The provisions of a will currently undergoing probate are: "Two thousand shares of Dorn stock to my son; $30,000 in cash from my Atlas Savings Bank account to my brother; $50,000 in cash to my daughter; and any remaining property divided equally between my son and daughter."
Assume that, at the time of death, the estate included 1,200 shares of Dorn stock, $60,000 cash in the savings account, and $70,000 in cash from other sources.What would the son have received from the settlement of the estate?

A) 1,200 shares of Dorn stock and $35,000 cash.
B) 2,000 shares of Dorn stock and $10,000 cash.
C) 2,000 shares of Dorn stock and $25,000 cash.
D) 1,200 shares of Dorn stock and $10,000 cash.
E) 1,200 shares of Dorn stock and $25,000 cash.

Question 5

When an estate does not have sufficient assets to satisfy all claims against it, what claim has the highest priority?

A) Expenses of administering the estate.
B) Federal income taxes.
C) State income taxes.
D) Medical expenses of the final illness.
E) Back wages owed to any employees.

Question 6

The terms of a will currently undergoing probate are: "A gift to my brother David of $25,000 cash; to my son James, $50,000 from my Harbor Savings Bank account; and to my daughter Lila, all of my remaining property." At the time of death, the balance in the savings account was $40,000, and there was additional cash (after payment of funeral expenses and all claims against the estate) of $70,000.
The decedent resided in a state that does not treat a demonstrative legacy shortfall as a general legacy.How much would James have received from the estate?

A) $50,000.
B) $40,000.
C) $25,000.
D) $45,000.
E) $30,000.

Question 7

The terms of a will currently undergoing probate are: "A gift to my brother David of $25,000 cash; to my son James, $50,000 from my Harbor Savings Bank account; and to my daughter Lila, all of my remaining property." At the time of death, the balance in the savings account was $40,000, and there was additional cash (after payment of funeral expenses and all claims against the estate) of $70,000.
The decedent resided in a state that treats a demonstrative legacy shortfall as a general legacy.How much would Lila have received from the estate?

A) $ 0.
B) $40,000.
C) $35,000.
D) $45,000.
E) $30,000.

Question 8

Executor's fees and court costs for settling an estate usually

A) Must be apportioned between the principal and the income of the estate.
B) Are adjustments to the principal of the estate.
C) Are adjustments to the income of the estate.
D) Are subtracted from life insurance proceeds.
E) Are ignored.

Question 9

Which of the following is usually not accounted for as an adjustment to a trust's income?

A) Ordinary repairs expense.
B) Rent expense.
C) Investment costs and commissions.
D) Insurance expense.
E) Property taxes.

Question 10

What guidelines must be followed to classify a transaction as associated with the principal of an estate or as an income transaction?

A) Generally accepted accounting principles.
B) Federal estate laws.
C) State estate laws.
D) The Internal Revenue Code.
E) The decedent's intentions or state laws.

Question 11

Which of the following is usually accounted for as an adjustment to a trust's principal?

A) Repairs expense.
B) Rent expense.
C) Investment costs and commissions.
D) Insurance expense.
E) Property taxes.

Question 12

A demonstrative legacy is a

A) Gift of personal property that is directly identified.
B) Cash gift from a particular source.
C) Gift of estate property that remains after carrying out the other provisions of the will.
D) Gift of real property.
E) Gift of intangible property.

Question 13

The terms of a will currently undergoing probate are: "A gift to my brother David of $25,000 cash; to my son James, $50,000 from my Harbor Savings Bank account; and to my daughter Lila, all of my remaining property." At the time of death, the balance in the savings account was $40,000, and there was additional cash (after payment of funeral expenses and all claims against the estate) of $70,000.
The decedent resided in a state that treats a demonstrative legacy shortfall as a general legacy.How much would James have received from the estate?

A) $50,000.
B) $40,000.
C) $25,000.
D) $45,000.
E) $30,000.

Question 14

What is the process of abatement?

A) An attempt to determine the deceased's intentions when the terms of the will are unclear.
B) A reduction of various bequests when the estate is not adequate to satisfy them completely.
C) Selling of assets included in an estate to be able to pay creditors.
D) Payment of the claims of creditors.
E) The establishment of how the creditors will be paid.

Question 15

Under what circumstance does an estate have an executor?

A) When there is no valid will.
B) When the estate exceeds the dollar amount of the estate tax exemption.
C) When the will establishes a trust fund.
D) When the will is contested.
E) When the will names a specific person to administer the estate.

Question 16

In a will, a devise is a

A) Gift of personal property that is directly identified.
B) Cash gift from a particular source.
C) Gift of estate property that remains after carrying out the other provisions of the will.
D) Gift of real property.
E) Gift of intangible property.

Question 17

The terms of a will currently undergoing probate are: "A gift to my brother David of $25,000 cash; to my son James, $50,000 from my Harbor Savings Bank account; and to my daughter Lila, all of my remaining property." At the time of death, the balance in the savings account was $40,000, and there was additional cash (after payment of funeral expenses and all claims against the estate) of $70,000.
The gift to James is a

A) General legacy.
B) Specific legacy.
C) Demonstrative legacy.
D) Residual legacy.
E) Devise.

Question 18

The terms of a will currently undergoing probate are: "A gift to my brother David of $25,000 cash; to my son James, $50,000 from my Harbor Savings Bank account; and to my daughter Lila, all of my remaining property." At the time of death, the balance in the savings account was $40,000, and there was additional cash (after payment of funeral expenses and all claims against the estate) of $70,000.
The decedent resided in a state that does not treat a demonstrative legacy shortfall as a general legacy.How much would Lila have received from the estate?

A) $ 0.
B) $40,000.
C) $35,000.
D) $45,000.
E) $30,000.

Question 19

The terms of a will currently undergoing probate are: "A gift to my brother David of $25,000 cash; to my son James, $50,000 from my Harbor Savings Bank account; and to my daughter Lila, all of my remaining property." At the time of death, the balance in the savings account was $40,000, and there was additional cash (after payment of funeral expenses and all claims against the estate) of $70,000.
The gift to David is a

A) General legacy.
B) Specific legacy.
C) Demonstrative legacy.
D) Residual legacy.
E) Devise.

Question 20

In an executor's accounting for an estate, debts and other obligations are recorded

A) At book value.
B) As a reduction of income.
C) On the date of payment.
D) As soon as discovered.
E) Only if they are past due.

Question 21

Jim Bowie died on April 1, 2018.The estate has the following gross asset valuation information: The estate tax will be calculated based on:

A) $73,000.
B) $75,000.
C) $76,000.
D) $80,000.
E) $89,000.

Question 22

The estate of Bobbi Jones has the following provisions: total value of estate assets $2,000,000, amount specified to convey to a spouse $1,000,000, amount specified to convey to children $200,000, total debts 400,000, administrative expenses $50,000, and funeral expenses of $30,000.What is the value of the taxable estate?

A) $ 320,000.
B) $ 520,000.
C) $ 550,000.
D) $1,480,000.
E) $1,520,000.

Question 23

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

A) General legacy.
B) Specific legacy.
C) Demonstrative legacy.
D) Residual legacy.
E) Devise.

Question 24

A gift of any remaining estate property is a

A) General legacy.
B) Specific legacy.
C) Demonstrative legacy.
D) Residual legacy.
E) Devise.

Question 25

The provisions of a will currently undergoing probate are: "Two thousand shares of Dorn stock to my son; $30,000 in cash from my Atlas Savings Bank account to my brother; $50,000 in cash to my daughter; and any remaining property divided equally between my son and daughter."
Assume that the estate included 1,200 shares of Dorn stock, $22,000 cash in the savings account, and $70,000 in cash from other sources.The decedent resided in a state that treats a demonstrative legacy shortfall as a general legacy..What would the daughter have received from the settlement of the estate?

A) $60,000 cash.
B) $50,000 cash.
C) $55,000 cash.
D) $62,000 cash.
E) $56,000 cash.

Question 26

An executor will normally carry out all the following tasks except:

A) Distribute property to beneficiaries.
B) Settle claims against the decedent.
C) Inventory property existing at the date of death.
D) Prepare estate tax returns.
E) Account to the probate court.

Question 27

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

A) General legacy.
B) Specific legacy.
C) Demonstrative legacy.
D) Residual legacy.
E) Devise.

Question 28

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

A) Dividends declared prior to death.
B) Investment commissions and other costs.
C) Funeral expenses.
D) Insurance expenses.
E) Debts incurred prior to death.

Question 29

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

A) Ordinary repair expenses.
B) Insurance expenses.
C) Utility expenses.
D) Major repairs to rental property.
E) Property taxes.

Question 30

A gift that is specified in a will as "I leave $5,000 in cash from my checking account to my daughter" is a

A) General legacy.
B) Specific legacy.
C) Demonstrative legacy.
D) Residual legacy.
E) Devise.

Question 31

The party to receive a distribution of principal from an estate is legally called a(n):

A) Principal grantee.
B) Corpus benefitor.
C) Estate receiver.
D) Remainderman.
E) Estate distributee.

Question 32

When there are not enough assets in the estate to satisfy all legacies in the will, the distribution schedule goes through a process of:

A) Ademption.
B) Amendment.
C) Abatement.
D) Accretion.
E) Aggregation.

Question 33

After expenses of administering an estate, which claims would be next in a typical order of priority to establish which creditors will get paid? (1) Funeral expenses
(2) Medical expenses of the last illness
(3) Debts and taxes given preference under laws
(4) Credit card debts.

A) 1 and 2.
B) 2 and 3.
C) 3 and 4.
D) 1 and 4.
E) 2 and 4.

Question 34

The provisions of a will currently undergoing probate are: "One thousand shares of Wal-Mart Stores stock to my son; $10,000 in cash from my Astoria Savings Bank account to my brother; $5,000 in cash to my daughter; and any remaining property divided equally between my son and daughter."
Assuming at the time of death the estate included 1,400 shares of Wal-Mart Stores stock and $25,000 cash in the savings account, what would the son have received from the settlement of the estate?

A) 1,000 shares of Wal-Mart stock and $15,000 cash
B) 1,000 shares of Wal-Mart stock and $0 cash
C) 1,000 shares of Wal-Mart stock and $10,000 cash
D) 1,200 shares of Wal-Mart stock and $5,000 cash
E) 1,400 shares of Wal-Mart stock and $5,000 cash

Question 35

The provisions of a will currently undergoing probate are: "One thousand shares of Wal-Mart Stores stock to my son; $10,000 in cash from my Astoria Savings Bank account to my brother; $5,000 in cash to my daughter; and any remaining property divided equally between my son and daughter."
.Assuming at the time of death the estate included 1,000 shares of Wal-Mart Stores stock and $6,000 cash in the savings account, what would the brother have received from the settlement of the estate?

A) $ 0.
B) $ 5,000.
C) $ 6,000.
D) $10,000.
E) $11,000.

Question 36

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

A) 1 only.
B) 2 only.
C) 3 only.
D) 1 and 2.
E) 1, 2, and 3.

Question 37

The provisions of a will currently undergoing probate are: "One thousand shares of Wal-Mart Stores stock to my son; $10,000 in cash from my Astoria Savings Bank account to my brother; $5,000 in cash to my daughter; and any remaining property divided equally between my son and daughter."
What is the remaining principal to be divided equally between the son and the daughter?

A) $10,000 cash
B) $15,000 cash
C) 400 shares of Wal-Mart stock and $10,000 cash
D) 400 shares of Wal-Mart stock and $15,000 cash
E) 1,000 shares of Wal-Mart stock and $5,000 cash

Question 38

The provisions of a will currently undergoing probate are: "Two thousand shares of Dorn stock to my son; $30,000 in cash from my Atlas Savings Bank account to my brother; $50,000 in cash to my daughter; and any remaining property divided equally between my son and daughter."
Which of the following is not subtracted to arrive at the taxable value of an estate?

A) Liabilities.
B) Charitable bequests.
C) Funeral expenses.
D) Estate administration expenses.
E) Deduction for property conveyed to children of decedent.

Question 39

What is the amount of the personal exemption on an estate income tax return?

A) $ 0.
B) $100.
C) $300.
D) $500.
E) $600.

Question 40

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?

A) $ 901,678.
B) $1,251,678.
C) $1,268,738.
D) $1,310,700.
E) $ 651,678.

Question 41

What are the three goals of probate laws?

Question 42

The executor of the estate of Yelbert Toper recorded the following information:
Assets discovered at death (at fair value):
Debts of $22,100 still remain to be paid.The shares of Dell Technologies stock were conveyed to the appropriate beneficiary.Executor fees are allocated based on total charges for principal and for income.
Required:
Prepare a charge and discharge statement for this estate.

Question 43

The estate of Kent Talbert reported the following information: Required:
Prepare a schedule to show the amount of the taxable estate.

Question 44

In settling an estate, what is the meaning of the term devise?

Question 45

What are the four levels of claims in the order of priority of the Uniform Probate Code?

Question 46

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.

Question 47

Which of the following is not a type of trust used for estate planning?

A) Minor's Section 2503(c) trust.
B) Alimony trust.
C) Credit shelter trust.
D) Qualified terminable interest property trust.
E) Grantor retained annuity trust.

Question 48

How may real property be treated in identifying estate property subject to probate?

Question 49

What is meant by "an individual dies intestate"?

Question 50

Prepare a schedule to show the amount of federal income tax that must be paid.

Question 51

Which type of trust requires that income generated from its assets be recognized, for federal income tax purposes, by the grantor during his or her lifetime, and reported in his or her individual income tax return?

A) Inter vivos trust.
B) Grantor trust.
C) Revocable living trust.
D) Family trust.
E) Irrevocable life insurance trust.

Question 52

What is a remainderman of trust property?

Question 53

What is the difference between an executor and an administrator?

Question 54

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.
Funeral expenses of $26,000 were paid.
Prepare the journal entry to record the transaction.

Question 55

What is the purpose of the Uniform Probate Code?

Question 56

In settling an estate, what is the meaning of the term legacy?

Question 57

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

Question 58

For each of the following situations, select the best answer concerning adjustments to principal and income of an estate.Assume that the will does not specify whether the item is to be classified as principal or income.
(A) Adjustment to the principal of the estate.
(B) Adjustment to the income of the estate.
(C) Allocated between the principal and income of the estate in some fair manner.
(D) Allocated between the principal and income of the estate determined by existence at date of death.
___ 1.Homestead allowance
___ 2.Insurance expenses
___ 3.Executor's fee
___ 4.Life insurance proceeds when estate is beneficiary
___ 5.Investment commissions
___ 6.Debts incurred prior to death
___ 7.Water and other utility expenses
___ 8.Liquidating dividends
___ 9.Dividend income
___ 10.Funeral expenses
___ 11.Extraordinary repairs on income-producing property
___ 12.Attorney fees
___ 13.Property taxes
___ 14.Gains and losses on the sale of securities
___ 15.Interest income
___ 16.Court costs
___ 17.Ordinary repairs on income-producing property
___ 18.Accounting fees

Question 59

What is meant by estate accounting?

Question 60

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.

Question 61

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.

Question 62

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 distribution of $4,000 to Anna Lee, an income beneficiary.

Question 63

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 ordinary repairs to the rental property of $5,000.

Question 64

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

Question 65

During the current year, an estate generates the following income amounts: Rental income $10,000, Interest income 4,000, Dividend income 6,000.The rental income is conveyed immediately to the beneficiary stated in the decedent's will.Dividends of $2,000 are donated to the decedent's church.What amount of federal income tax must be paid by the estate?

Question 66

An inter vivos trust was created by Isaac Posney.Isaac owned a large department store in Juggins, Utah.Adjacent to the store, Isaac also owned a tract of land that was used as an extra parking lot when the store was having a sale or during the Christmas season.Isaac expected the land to appreciate in value and eventually be sold for an office complex or additional stores.Isaac placed the land into a charitable lead trust, which would hold the land for ten years until Isaac's son would turn 21.At that time, title would be transferred to the son.The store will pay rent to use the land during the interim.The income generated each year from this usage will be given to a local church.The land was currently valued at $416,000.
During the first year of this arrangement, the trustee recorded the following cash transactions:
Required:
Prepare all required journal entries for this trust fund including the entry to create the trust.

Question 67

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.
Administrative expenses of $13,000 were paid.Prepare the journal entry to record the transaction.

Question 68

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.
Debts of $52,000 were discovered.
Prepare the journal entry to record the transaction.

Question 69

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 payment of the estate's liabilities for debts incurred prior to the decedent's death.

Question 70

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.
Additional debts of $78,000 were discovered.Debts totaling $130,000 were paid.Prepare the journal entry to record the transaction.

Question 71

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.

Question 72

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.

Question 73

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 collection of rental income of $10,000.$1,000 had been earned prior to the decedent's death.

Question 74

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.
Cash of $195,000 was conveyed to the appropriate beneficiary.Prepare the journal entry to record the transaction.

Question 75

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.

Question 76

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 collection of the life insurance policy.

Question 77

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.

Question 78

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 life insurance policy was collected.Prepare the journal entry to record the transaction.

Question 79

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 interest of $5,000 that was earned on the bonds of the estate.Of this amount, $2,000 had been earned prior to death.

Question 80

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.
Title to the residence was conveyed to Louis Tweed.Prepare the journal entry to record the transaction.