​Kit Has Two Children, Lea (The Eldest) and Merl, Both

question 57

Multiple Choice

​Kit has two children, Lea (the eldest) and Merl, both of whom predecease Kit. Lea is survived by a son, Nat, and Merl by two daughters, Opal and Pearl. On Kit's death, if the estate is distributed per capita

• A) ​Nat will receive one-half of the estate, and Opal and Pearl will each receive one-fourth.
• B) ​Nat will receive the entire estate.
• C) ​the grandchildren will each receive one-third of the estate.
• D) ​the grandchildren will not receive anything.

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Definitions:

Cost of Goods Sold

The direct costs associated with producing goods sold by a business, including materials and labor.

Statement of Cash Flows

A financial statement that summarizes the amount of cash and cash equivalents entering and leaving a company.

Indirect Method

A cash flow statement approach that adjusts net income for changes in balance sheet accounts to convert it from an accrual basis to a cash basis.

Net Income

The amount of profit that remains after all operating expenses, taxes, and costs have been subtracted from total revenue.