Question

I do not want a handwritten answer.

The executor of Gina Purcell's estate has recorded the following information:

Assets discovered at death (at fair value):

Cash	$770,000
Life insurance receivable	285,000
Investments:
Walt Disney Company	28,000
Polaroid Corporation	44,000
Ford Motor Company	51,000
Dell Inc.	49,000
Rental property	470,000
Cash outflows:
Funeral expenses	$38,000
Executor fees	29,000
Ordinary repairs of rental property	6,000
Debts	82,000
Distribution of income to income beneficiary	5,700
Distribution to charitable remainder trust	385,000
Cash inflows:
Sale of Polaroid stock	$55,500
Rental income ($7,500 earned prior to death)	18,500
Dividend income ($3,700 declared prior to death)	19,500
Life insurance proceeds	285,000

Debts of $34,000 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.

Answer 1

Answers working Note: calculate the amount of assets as per original inventory: Assels = cash + Life insurance receivable. Investments + Rental properly. $770,000+ $285,000+$28,000+ $44000+ $51,000+ :. Assets = $1,697,000 $49,000) + 470,000 Change and Discharge statement Particulars Amount Amount As to principal I charge my self- A ssels per Original inventory Assets subsequently discovered $1,697.000 Rental income receivable 17500 Dividends receivable 13700 $11.200 Gain on sale of pureell stock $11,500 [$55500 - $44,000] Total charges $1719,700 Ilvedit myself witte Debls of decedeut $ 82,000 Funeral expenses 43&000 Executoy expenses $ 29,000 Legacy: charitable remainder trust $385,000 Transfer of Dell me. stock | $49,000 $583000) Estale principal $1,136,700 Estate principal: $587,700 Cash $79,000 Investmenlos $28.000+*51,000] $470,000 Rental Property Estale perincipal $1136700 As to Income Icharge Myself witt:-(a) Reulal income 18.500- $7500) $11,000 Dividend income ($19.500-3700) Icredit myself withs(b) Repair expense $6000 Legacy: Income to beneficiary $5.700 Balance as to Income $ 15,100 Balance as to Income Cash $15,800 $26.800 ($11,700) 15.100.