Question

Assuming that no stipulation is made in the will, indicate in the answer space provided by placing the letter A, B, or C for each of the following items indicating whether the item would affect A=principal accounts only, B=income accounts only, or C=both principal and income accounts of an estate. For example, the answer could show 1=D; 2=D; 3=D…10=D (would use A, B, or C, not D in answer).

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(1)	Gain on sale of an estate asset
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(2)	Loss on sale of an estate asset
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(3)	Redemption of a bond four months after death on which there was accrued interest on date of death
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(4)	Distribution to an income beneficiary
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(5)	Income taxes due on decedent's taxable income to date of death
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(6)	Location of an asset after filing the inventory of estate assets
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(7)	Fee paid for professional management of both principal and income property
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(8)	Costs incurred in probating the will
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(9)	Rental income earned after date of death
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(10)	Dividends declared after date of death

Answer 1

​	Particular	Answer	Explanation
-1	Gain on sale of an estate asset	A	principal accounts only
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-2	Loss on sale of an estate asset	A	principal accounts only
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-3	Redemption of a bond four months after death on which there was accrued interest on date of death	C	both principal and income accounts of an estate
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-4	Distribution to an income beneficiary	B	Income accounts only
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-5	Income taxes due on decedent's taxable income to date of death	A	principal accounts only
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-6	Location of an asset after filing the inventory of estate assets	A	principal accounts only
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-7	Fee paid for professional management of both principal and income property	C	both principal and income accounts of an estate
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-8	Costs incurred in probating the will	A	principal accounts only
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-9	Rental income earned after date of death	B	Income accounts only
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-10	Dividends declared after date of death	B	Income accounts only