What is the solution to this problem? The executor of Gina Purcell’s estate has

Question

What is the solution to this problem?

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

Assets discovered at death (at fair value):

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.

    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

Explanation / Answer

Discharge Statement of the Estate Particulars Amount $ Receipts :     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 Less:Conveyed to benficiary        (49,000)     Rental property       470,000 Cash Inflow from Revenue Activities:     Sale of Polaroid stock       550,000     Rental income ($7,500 earned prior to death)         11,000     Dividend income ($3,700 declared prior to death)         15,800     Life insurance proceeds       285,000 Total Avilable Funds    2,509,800 Order of Application/Payments :     Executor fees - As First Preference         29,000     Funeral expenses         38,000     Ordinary repairs of rental property           6,000     Debts         82,000     Unpaid Debts         34,000     Distribution of income to income beneficiary           5,700     Distribution to charitable remainder trust       385,000 Total Distrucutions       579,700 Net prceeds Avilable after Distrubution    1,930,100

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