Question

Problem 19-33 (LO 19-2)

Marie Hardy’s will has the following provisions:

"I leave the cash balance deposited in the First National Bank (up to a total of $53,500) to Jack Abrams. I leave $19,400 cash to Suzanne Benton. I leave 1,090 shares of Coca-Cola Company stock to Cindy Cheng. I leave my house to Dennis Davis. I leave all of my other assets and properties to Wilbur N. Ed."

1. Assume that the estate has the following assets: $36,200 cash in the First National Bank, $17,200 cash in the New Hampshire Savings and Loan, 820 shares of Coca-Cola stock, 1,270 shares of Xerox stock, a house, and other property valued at $14,900. What distributions will be made from this estate?

2. Assume that the estate has the following assets: $57,500 cash in the First National Bank, $5,700 cash in the New Hampshire Savings and Loan, 1,270 shares of Coca-Cola stock, 580 shares of Xerox stock, and other property valued at $28,000. What distributions will be made from this estate?

(Make estate distributions in the order mentioned in the question.)

Problem 19-33 (LO 19-2)

Marie Hardy’s will has the following provisions:

"I leave the cash balance deposited in the First National Bank (up to a total of $53,500) to Jack Abrams. I leave $19,400 cash to Suzanne Benton. I leave 1,090 shares of Coca-Cola Company stock to Cindy Cheng. I leave my house to Dennis Davis. I leave all of my other assets and properties to Wilbur N. Ed."

1. Assume that the estate has the following assets: $36,200 cash in the First National Bank, $17,200 cash in the New Hampshire Savings and Loan, 820 shares of Coca-Cola stock, 1,270 shares of Xerox stock, a house, and other property valued at $14,900. What distributions will be made from this estate?

2. Assume that the estate has the following assets: $57,500 cash in the First National Bank, $5,700 cash in the New Hampshire Savings and Loan, 1,270 shares of Coca-Cola stock, 580 shares of Xerox stock, and other property valued at $28,000. What distributions will be made from this estate?

(Make estate distributions in the order mentioned in the question.)

shares a. Cash Cash Coca-Cola stock House Other property Cash Cash Coca-Cola stock shares House Other property

Answer 1

a)
	CASH	Jack Abrams	36200
	CASH	Suzanne Benton	17200
	COCA-COLA STOCK	Cindy Cheng	820	SHARES
	HOUSE	Dennis Davis
	OTHER PROPERTY	Wilbur N. Ed
$17,200 cash in the New Hampshire Savings and Loan still remains. To that amount, more cash must be added. Either the Xerox stock or the other property (or both) must be liquidated in order to give Suzanne Benton $19,400
b)
	CASH	Jack Abrams	53500
	CASH	Suzanne Benton	5700
	COCA-COLA STOCK	Cindy Cheng	1090	shares
	HOUSE	Dennis Davis
	OTHER PROPERTY	Wilbur N. Ed
$4,000 cash remains in the First National Bank along with $5,700 in the New Hampshire Savings and Loan. To this total, more cash must be added. Either the Xerox stock, the remaining Coca‑Cola stock, and/or the other remaining property must be liquidated In order to give Suzanne Benton a total of $19,400.