The executor of Rose Shield’s estate listed the following properties (at fair va
ID: 2568782 • Letter: T
Question
The executor of Rose Shield’s estate listed the following properties (at fair value):
Cash
$
365,000
Life insurance receivable
265,000
Investments in stocks and bonds
165,000
Rental property
103,000
Personal property
195,000
Following are the transactions that occur in the months following the decedent’s death:
(1) Claims of $93,000 are made against the estate for various debts incurred before the decedent’s death.
(2) Interest of $25,000 is received from bonds held by the estate. Of this amount, $5,500 had been earned prior to death.
(3) Ordinary repairs costing $6,000 are made to the rental property.
(4) All debts ($93,000) are paid.
(5) Stocks recorded in the estate at $22,500 are sold for $32,000 cash.
(6) Rental income of $27,000 is collected. Of this amount, $2,000 had been earned prior to the decedent’s death.
(7) Cash of $7,300 is distributed to Jim Arness, an income beneficiary.
(8) The proceeds from the life insurance policy are collected and the money is immediately distributed to Amanda Blake as specified in the decedent’s will.
(9) Funeral expenses of $23,000 are paid.
Prepare in proper form a charge and discharge statement.
ESTATE OF ROSE SHIELDS
Charge and Discharge Statement
As to Principal
I charge myself with:
Assets per original inventory
?
Assets subsequently discovered:
Interest receivable
?
?
Rental income receivable
?
0
Gain on sale of stocks
?
Total charges
$0
I credit myself with:
Debts of decedent
?
Funeral expenses
?
Legacy: Amanda Blake
?
?
?
0
Estate principal
$0
Estate principal:
Cash
?
Investments in stocks and bonds
?
Rental property
?
Personal property
?
?
?
Estate principal
$0
As to Income
I charge myself with:
Interest income
?
Rental income
?
?
?
$0
I credit myself with:
Repair expenses
?
Legacy: Jim Arness
?
?
?
0
Balance as to income
$0
Balance as to income:
Cash
?
Cash
$
365,000
Life insurance receivable
265,000
Investments in stocks and bonds
165,000
Rental property
103,000
Personal property
195,000
Explanation / Answer
ESTATE OF ROSE SHIELDS
Charge and Discharge Statement
As to Principal
I charge myself with:
Assets per original inventory
$1,093,000
Assets subsequently discovered:
Interest receivable
$5,500
Rental income receivable
$2,000
$7,500
Gain on sale of stocks
$9,500
Total charges
$1,110,000
I credit myself with:
Debts of decedent
93,000
Funeral expenses
$23,000
Legacy: Amanda Blake
265,000
(Proceeds of life insurance)
$381,000
Estate principal
$729,000
Estate principal:
Cash
288,500
Investments in stocks and bonds
142,500
Rental property
103,000
Personal property
195,000
Estate principal
$729,000
As to Income
I charge myself with:
Interest income
19,500
Rental income
25,000
$44,500
I credit myself with:
Repair expenses
7,300
Legacy: Jim Arness
7,300
Balance as to income
$14,600
Balance as to income:
Cash
29,900
ESTATE OF ROSE SHIELDS
Charge and Discharge Statement
As to Principal
I charge myself with:
Assets per original inventory
$1,093,000
Assets subsequently discovered:
Interest receivable
$5,500
Rental income receivable
$2,000
$7,500
Gain on sale of stocks
$9,500
Total charges
$1,110,000
I credit myself with:
Debts of decedent
93,000
Funeral expenses
$23,000
Legacy: Amanda Blake
265,000
(Proceeds of life insurance)
$381,000
Estate principal
$729,000
Estate principal:
Cash
288,500
Investments in stocks and bonds
142,500
Rental property
103,000
Personal property
195,000
Estate principal
$729,000
As to Income
I charge myself with:
Interest income
19,500
Rental income
25,000
$44,500
I credit myself with:
Repair expenses
7,300
Legacy: Jim Arness
7,300
Balance as to income
$14,600
Balance as to income:
Cash
29,900
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