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Chapter 20, Problem 6 If you're still having trouble viewing this image for some reason. Please just go to the link below that shows the
Chapter 20, Problem 6
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reparation of a charge and discharge statement. Eleanor Problem 20-6 (LO 4) P Matsun died on June 1 of the current year, leaving a valid will with James Madison being named as her personal representative. All of the following occurred in the year of her death: e personal representative prepared the following inventory of assets at fair market val of the date of death ue as a. Th 1,000 Shares of Pal Corporation common stock at $60 per share 2,000 Shares of BVD Corporation common stock...... Rapid Transit Corporation (RTC) 8% bonds, interest payable April 1 and 31,000 60,000 40,000 30,300 October 1, $30,000 face value. Time share condominium unit at Lake Tahoe 50% Interest in Matsun Limo Service, a partnership . . . . . . . Personal residence... . . . . . . . . . . . . . 185,000 b. Subsequent to filing the above inventory with the court, the personal representative di ered the decedent's gold coin collection valued at $18,000 c. On June 20, $2,500 was received from Pal Corporation for dividends declared on May 10 to shareholders of record on May 31. d. On July 7, the time share condominium was sold for $30,000 e. The following items were paid during the period from June 2 through July 31: The decedent's charge card balances Funeral expenses. Legal fees to probate the will Cost to remodel the personal residence prior to sale..... . . . . . . Payment to the personal representative as approved by the court. $ 2,900 16,000 2,500 13,000 . . . . . . f. On July 5, a check for $15,000 was received for the decedent's portion of Matsun Limo Ser g. The decedent's partner in the limo service offered the personal representative $65,000 for h. In mid-September, the decedent's personal residence was sold for $162,000, net of brokerage vice income earned during the quarter ended June 30. Income is assumed to be earned evenly over the quarter the decedent's interest in the partnership. After much negotiation, the interest was sold for $80,000 and closing costs totaling $15,000. The outstanding mortgage and accrued interest were romptly paid in the amount of $82,800. At the date of death, the mortgage balance along with accrued interest was $81,100 On October 1, a check was received for interest on the RTC bonds On November 5, the decedent's income tax return for the year of death was filed and $6,400 of additional taxes was sent in with the return i. j. Prepare a charge and discharge statement as of December 31 of the current yearStep by Step Solution
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