When There Are Not Enough Assets in the Estate to Satisfy

question 66

Multiple Choice

When there are not enough assets in the estate to satisfy all legacies in the will, the distribution schedule goes through a process of:

• A) Ademption.
• B) Amendment.
• C) Abatement.
• D) Accretion.
• E) Aggregation.

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Definitions:

Net Income

The total earnings of a company after subtracting all expenses and taxes from total revenue.

Stockholders' Equity

The residual interest in the assets of the corporation after deducting its liabilities, representing ownership interest.

Common Stock

Represents ownership shares in a corporation, giving holders voting rights and a share in the company's profits through dividends.

Fair Value

An estimate of the price at which an asset or liability would be traded in a fair transaction between willing participants in the market.