Advanced Accounting
14th Edition
ISBN: 9781260726435
Author: Joe Ben Hoyle
Publisher: Mcgraw-hill Higher Education (us)
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Question
Chapter 19, Problem 6P
To determine
Identify the correct option out of the given statements.
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Students have asked these similar questions
The executor of Rose Shield’s estate listed the following properties (at fair value):
Prepare journal entries to record the property held by Ms. Shield’s estate and then each of the following transactions that occur in the months following the decedent’s death:
Claims of $80,000 are made against the estate for various debts incurred before the decedent’s death.
Interest of $12,000 is received from bonds held by the estate. Of this amount, $5,000 had been earned prior to death.
Ordinary repairs costing $6,000 are made to the rental property.
All debts ($80,000) are paid.
Stocks recorded in the estate at $16,000 are sold for $19,000 cash.
(Rental income of $14,000 is collected. Of this amount, $2,000 had been earned prior to the decedent’s death.
(7) Cash of $6,000 is distributed to Jim Arness, an income beneficiary.
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.
Funeral expenses…
One of the following is deductible as claim against the estate
An obligation contracted by the decedent one day before he died
An obligation of the decedent which prescribed while the decedent was still alive
An obligation which was not reduced in writing under the Statutes of Fraud
An obligation which shall be paid by the heirs.
First Statement – The heirs are allowed to withdraw from the decedent’s bank account withoutpresenting proof of payment of the estate tax, i.e., eCAR issued by the CIR or his duly authorizedrepresentative, provided the withdrawal will be subjected to a final withholding tax of six percent(6%)oftheamount tobewithdrawn.Second Statement - Cash in bank, withdrawn within 1 year from the death of the decedent, and subjected to the 6% withholding tax, is nolonger required to be added in the grosse state in the course of filing the estate tax return.
a. True,True
b. True,False
c. False,False
d. False, True
Chapter 19 Solutions
Advanced Accounting
Ch. 19 - Prob. 1QCh. 19 - Prob. 2QCh. 19 - Prob. 3QCh. 19 - Prob. 4QCh. 19 - Prob. 5QCh. 19 - Prob. 6QCh. 19 - Prob. 7QCh. 19 - Prob. 8QCh. 19 - What claims against an estate have priority?Ch. 19 - Prob. 10Q
Ch. 19 - Prob. 11QCh. 19 - Prob. 12QCh. 19 - Prob. 13QCh. 19 - How is the federal estate tax computed?Ch. 19 - Prob. 15QCh. 19 - Prob. 16QCh. 19 - Prob. 17QCh. 19 - Prob. 18QCh. 19 - Prob. 19QCh. 19 - Prob. 20QCh. 19 - Prob. 21QCh. 19 - Prob. 22QCh. 19 - Prob. 23QCh. 19 - Prob. 24QCh. 19 - Prob. 25QCh. 19 - Prob. 26QCh. 19 - Prob. 27QCh. 19 - Prob. 28QCh. 19 - Prob. 29QCh. 19 - Prob. 30QCh. 19 - Prob. 1PCh. 19 - Prob. 2PCh. 19 - Prob. 3PCh. 19 - Prob. 4PCh. 19 - Prob. 5PCh. 19 - Prob. 6PCh. 19 - Prob. 7PCh. 19 - Prob. 8PCh. 19 - Prob. 9PCh. 19 - Prob. 10PCh. 19 - Which of the following is a specific legacy? a....Ch. 19 - Prob. 12PCh. 19 - Prob. 13PCh. 19 - Prob. 14PCh. 19 - Prob. 16PCh. 19 - Prob. 21PCh. 19 - Prob. 22PCh. 19 - Prob. 23PCh. 19 - Prob. 24PCh. 19 - Prob. 25PCh. 19 - Prob. 26PCh. 19 - Prob. 27PCh. 19 - Prob. 28PCh. 19 - Prob. 29PCh. 19 - Prob. 30PCh. 19 - Prob. 31PCh. 19 - Prob. 32PCh. 19 - Prob. 33PCh. 19 - Prob. 34PCh. 19 - Prob. 35P
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