Essay About Net Assets Of The Estate And Following Statements

Acc 418 – Advanced Accounting Final Exam
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ACC418Advanced AccountingFinal ExamName ___Dominic Razzano_____Which of the following statements is incorrect?The probate process involves identifying the decedent’s assets and liabilities, determining asset values, disbursing assets to pay debts and taxes, and distributing the net assets of the estate per the instructions in the will.Until the principal is completely distributed, an estate exists as a separate, distinct entity that is governed, managed and accounted for.An estate consists of the net assets of an individual at the time of his or her death.All statements are correct.Which of the following statements is not true?If a decedent has no will or an invalid will, the person is said to have died intestate.An inter vivos trust is a way of avoiding the probate process.In a testate situation, the recipient of personal property is called the legatee.All states have adopted the Uniform Probate Code.Which of the following items is not included in the estate principal as of the date of death?Cash dividends declared, but not paid.Rents from investments in real estate that are earned after the date of death.Interest accrued on investment in bonds.Interest on a money market fund accrued but payable at a later date.Which of the following items is not charged against the principal of an estate?Loss on the sale of an estate asset.All three listed are charged against the principal.Final income tax of the decedent.A reasonable allowance for depreciation.In a valid will, the decedent left $15,000 to a specific individual. This gift is referred to as aGeneral legacy.Demonstrative legacy,Residuary legacy.Specific legacy.Which of the following statements is true?Abatement is followed if, after paying debts and expenses, the remaining estate principal is not adequate to satisfy the various legacies.A charge and discharge statement is prepared at the end of the distribution of the estate and is submitted to the state taxing authority.Recipients of gifts or estate assets must pay a tax on any gifts or estate assets valued over $15,000.In general, anyone may receive an intestate distribution.Which of the following items cannot be deducted from the gross estate when determining the tax base of an estate subject to federal estate taxes? Indebtedness against property.Unpaid property taxes.All three items listed can be deducted from the gross estate.Post-1976 taxable gifts by the decedent.Which of the following is true about estate assets?Estate assets are valued at fair value as of the date of death or within 6 months following that date.All statements given about the estate are false.Taxable estate assets include the value of all gifts given by the decedent after 1976 until the date of death.A surviving spouse may receive up to 50% of the decedent’s estate assets after estate taxes are paid on those taxes.Which of the following trusts is only created by a will?Testamentary trust.Inter vivos trust.Charitable remainder trust.All three trusts listed are created by a will.Upon death of the grantor, a charitable remainder trustDistributes the income from trust assets to individual beneficiaries over a period of time.Requires that property be included in the grantor’s estate.Requires that all property be donated to a charitable organization.Provides for a charitable deduction.