Cousin Mark Case Problem Seven years ago, Mark used his expertise as an accountant to start a successful Apple Soda busi
Posted: Wed Apr 27, 2022 2:20 pm
Cousin Mark Case Problem
Seven years ago, Mark used his expertise as an accountant to start
a successful Apple Soda business
with his cousins Bob and Tom. The Malus Domestica Company (MDC) has
been an incredible success. As
a result, Mark got rich, then retired so he could spend his time
pursuing his other interests.
Mark’s first wife Helen divorced him shortly after MDC launched
because she thought Mark was
throwing away a great career as an accountant to start a business
with his crazy cousins. Helen and
Mark didn’t have kids, but they did adopt a puppy named Winston who
became the subject of a custody
dispute during the divorce. They settled the dispute by agreeing
that Winston would split his time evenly
between their homes and that Mark would pay for Wilson’s full-time
dog walker and any medical
expenses for the remainder of his life. (Since the business was not
yet successful, Helen did not share in
the wealth Mark has accumulated. She supports herself with the
salary she earns as an elementary
school teacher.)
Shortly after the divorce, Mark met his current girlfriend Clarice.
For the last two years, they have been
living together in a house that Mark bought for $1.5 million after
they started dating. Clarice works for
the FBI but she is currently on maternity leave. They have a
healthy newborn son named Bill. This is
Charice’s only child. Mark also has an 18-year-old daughter named
Dawn from a prior relationship
whom he provides financial support to, including a promise to pay
for her education as she enters
college intending to become a surgeon.
After Mark’s father died, his 75-year-old mother moved into a
retirement community which provides
the care that she needs since she is in the early stages of
dementia. Mark supplements her income to
allow her to have the best possible care.
When Mark retired, he sold most of his ownership of MDC to his two
cousins in exchange for $37 million
dollars in cash, $20 million of which he has not yet spent. He
still owns 5% of MDC. He likes to keep
about $50,000 in cash in various bank accounts.
Mark is a generous supporter of Acme Animal Rescue where he and
Helen adopted Winston. Having
already helped them to build a new facility, he wants to make sure
they are able to maintain it in the
future.
Here are some other assets Mark has acquired:
A large collection of vintage apple computers
Comic book collection
A bag of loose diamonds given to him by his grandfather
A classic car collection valued at $350,000
2018 Chevy Equinox
A beach house in Malibu, California
A cabin in Gatlinburg Tennessee
Create a will and/or trusts to distribute Mark’s estate, assuming
that his death will precede all of the
other individuals mentioned in this problem.
Seven years ago, Mark used his expertise as an accountant to start
a successful Apple Soda business
with his cousins Bob and Tom. The Malus Domestica Company (MDC) has
been an incredible success. As
a result, Mark got rich, then retired so he could spend his time
pursuing his other interests.
Mark’s first wife Helen divorced him shortly after MDC launched
because she thought Mark was
throwing away a great career as an accountant to start a business
with his crazy cousins. Helen and
Mark didn’t have kids, but they did adopt a puppy named Winston who
became the subject of a custody
dispute during the divorce. They settled the dispute by agreeing
that Winston would split his time evenly
between their homes and that Mark would pay for Wilson’s full-time
dog walker and any medical
expenses for the remainder of his life. (Since the business was not
yet successful, Helen did not share in
the wealth Mark has accumulated. She supports herself with the
salary she earns as an elementary
school teacher.)
Shortly after the divorce, Mark met his current girlfriend Clarice.
For the last two years, they have been
living together in a house that Mark bought for $1.5 million after
they started dating. Clarice works for
the FBI but she is currently on maternity leave. They have a
healthy newborn son named Bill. This is
Charice’s only child. Mark also has an 18-year-old daughter named
Dawn from a prior relationship
whom he provides financial support to, including a promise to pay
for her education as she enters
college intending to become a surgeon.
After Mark’s father died, his 75-year-old mother moved into a
retirement community which provides
the care that she needs since she is in the early stages of
dementia. Mark supplements her income to
allow her to have the best possible care.
When Mark retired, he sold most of his ownership of MDC to his two
cousins in exchange for $37 million
dollars in cash, $20 million of which he has not yet spent. He
still owns 5% of MDC. He likes to keep
about $50,000 in cash in various bank accounts.
Mark is a generous supporter of Acme Animal Rescue where he and
Helen adopted Winston. Having
already helped them to build a new facility, he wants to make sure
they are able to maintain it in the
future.
Here are some other assets Mark has acquired:
A large collection of vintage apple computers
Comic book collection
A bag of loose diamonds given to him by his grandfather
A classic car collection valued at $350,000
2018 Chevy Equinox
A beach house in Malibu, California
A cabin in Gatlinburg Tennessee
Create a will and/or trusts to distribute Mark’s estate, assuming
that his death will precede all of the
other individuals mentioned in this problem.