Problem 20-6(LO 4) Preparation of a charge and discharge statement. Eleanor Matsun died on June 1 of the current year, leaving a valid will with James Madison being namedas her personal representative. All of the following occurred in the year of her death:

a. The personal representative prepared the following inventory of assets at fair market value as of the date of death:

Cash . . . . .......................................................$ 31,000

1,000 Shares of Pal Corporation common stock at $60 per share...........60,000

2,000 Shares of BVD Corporation common stock . . . . ...................40,000

Rapid Transit Corporation (RTC) 8% bonds, interest payable April 1 and October 1, $30,000 face value.....................................30,300

Time share condominium unit at Lake Tahoe ..........................25,000

50% Interest in Matsun Limo Service, a partnership . . ...................70,000

Personal residence . . . . . ............................................185,000

b. Subsequent to filing the above inventory with the court, the personal representative discovered the decedents 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 decedents charge card balances . . ................................$ 2,900

Funeral expenses ..................................................16,000

Legal fees to probate the will . .......................................2,500

Cost to remodel the personal residence prior to sale . .....................13,000

Payment to the personal representative as approved by the court . . . . . .......4,000

f. On July 5, a check for $15,000 was received for the decedents portion of Matsun Limo Service income earned during the quarter ended June 30. Income is assumed to be earned evenly over the quarter.

g. The decedents partner in the limo service offered the personal representative $65,000 for the decedents interest in the partnership. After much negotiation, the interest was sold for$80,000.

h. In mid-September, the decedents personal residence was sold for $162,000, net of brokerage and closing costs totaling $15,000. The outstanding mortgage and accrued interest were promptly paid in the amount of $82,800. At the date of death, the mortgage balance along with accrued interest was $81,100.

i. On October 1, a check was received for interest on the RTC bonds.

j. On November 5, the decedents income tax return for the year of death was filed and $6,400 of additional taxes was sent in with the return.

Prepare a charge and discharge statement as of December 31 of the current year.