Problem

The executor of Gina Purcell's estate has recorded the following information...

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

Assets discovered at death (at fair value):

Cash

$600,000

Life insurance receivable

200 ,000

Investments:

 

Walt Disney Company

11,000

Polaroid Corporation

27,000

Ford Motor Company

34,000

Dell Computer Corporation

32,000

Rental property

300,000

Cash outflows:

 

Funeral expenses

$ 21,000

Executor fees

12,000

Ordinary repairs of rental property

2,000

Debts

81,000

Distribution of income to income beneficiary

4,000

Distribution to charitable remainder trust

300,000

Cash inflows:

 

Sale of Polaroid stock

$ 30,000

Rental income ($4.000 earned prior to death)

11,000

Dividend income ($2,000 declared prior to death)

12,000

Life insurance proceeds

200,000

Debts of $17,000 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.

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