Hershel Barker was the president and majority shareholder in Bulldog Inc. He was a cash-basis taxpayer who reported his income on a calendar-year basis. On March 1, 2019, Hershel was killed in a skiing accident. The estate has elected to report its income on a calendar-year basis.

Required: Give the tax consequences for the parties involved in the following situations:

a. Dividends of $10,000 had been declared by Bulldog Inc. on February 3, 2019, payable March 4, 2019, to shareholders of record on February 17, 2019. Hershel's executor received the dividends.

b. What if the record date was March 10, 2019?