ch19 - ch19 1. When a person dies without leaving a valid...

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ch19 1. When a person dies without leaving a valid will, how is the distribution of his or her property determined? A. In accordance with federal inheritance laws. B. In accordance with generally accepted accounting principles. C. In accordance with a plan developed by the executor of the estate. D. In accordance with state inheritance laws. E. In accordance with common law. 2. Under what circumstance does an estate have an executor? A. When there is no valid will. B. When the estate exceeds the dollar amount of the estate tax exemption. C. When the will establishes a trust fund. D. When the will is contested. E. When the will names a specific person to administer the estate. 3. When an estate does not have sufficient assets to satisfy all claims against it, what claim has the highest priority? A. Expenses of administering the estate. B. Federal income taxes. C. State income taxes. D. Medical expenses of the final illness. E. Back wages owed to any employees. 4. What is the process of abatement ? A. An attempt to determine the deceased's intentions when the terms of the will are unclear. B. A reduction of various bequests when the estate is not adequate to satisfy them completely. C. Selling of assets included in an estate to be able to pay creditors. D. Payment of the claims of creditors. E. The establishment of how the creditors will be paid. 5. A demonstrative legacy is a A. gift of personal property that is directly identified. B. cash gift from a particular source. C. gift of estate property that remains after carrying out the other provisions of the will. D. gift of real property. E. gift of intangible property. 6. In a will, a devise is a A. gift of personal property that is directly identified. B. cash gift from a particular source. C. gift of estate property that remains after carrying out the other provisions of the will. D. gift of real property. E. gift of intangible property.
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7. What guidelines must be followed to classify a transaction as associated with the principal of an estate or as an income transaction? A. Generally accepted accounting principles. B. Federal estate laws. C. State estate laws. D. The Internal Revenue Code. E. The decedent's intentions or state laws. 8. Executor's fees and court costs for settling an estate usually A. must be apportioned between the principal and the income of the estate. B. are adjustments to the principal of the estate. C. are adjustments to the income of the estate. D. are subtracted from life insurance proceeds. E. are ignored. 9. In an executor's accounting for an estate, debts and other obligations are recorded A. at book value. B. at fair value. C. on the date of payment. D. as soon as they are discovered. E. only if they are past due.
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This note was uploaded on 10/12/2011 for the course ACCT 311 taught by Professor Mazzo during the Fall '10 term at CUNY Queens.

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ch19 - ch19 1. When a person dies without leaving a valid...

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