For Each of the Following Situations, Select the Best Answer

question 49

Essay

For each of the following situations, select the best answer concerning adjustments to principal and income of an estate.Assume that the will does not specify whether the item is to be classified as principal or income.
(A) Adjustment to the principal of the estate.
(B) Adjustment to the income of the estate.
(C) Allocated between the principal and income of the estate in some fair manner.
(D) Allocated between the principal and income of the estate determined by existence at date of death.
___ 1.Homestead allowance
___ 2.Insurance expenses
___ 3.Executor's fee
___ 4.Life insurance proceeds when estate is beneficiary
___ 5.Investment commissions
___ 6.Debts incurred prior to death
___ 7.Water and other utility expenses
___ 8.Liquidating dividends
___ 9.Dividend income
___ 10.Funeral expenses
___ 11.Extraordinary repairs on income-producing property
___ 12.Attorney fees
___ 13.Property taxes
___ 14.Gains and losses on the sale of securities
___ 15.Interest income
___ 16.Court costs
___ 17.Ordinary repairs on income-producing property
___ 18.Accounting fees

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Definitions:

Peripheral Portions

The outer regions or edges of an area or structure, often contrasted with the central or core areas.

Cones

Photoreceptor cells in the retina of the eye responsible for color vision and visual acuity under bright light conditions.

Suspensory Ligaments

Fibrous tissues that support an organ or structure, such as the lens of the eye, keeping it in place.

Ciliary Body

A part of the eye that includes the ciliary muscle, which controls the shape of the lens for focusing, and the ciliary processes that produce aqueous humor.