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At the beginning of the current year, Pauline Doyle gave Rocky Mountain College $600,000 in...

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Accounting

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At the beginning of the current year, Pauline Doyle gave Rocky Mountain College $600,000 in cash, with the provision that the cash be invested in income-producing securities. The college is to pay Pauline $20,000 at the end of each year for here remaining life. Upon her death, remaining resour become available to the college with no restrictions as to use. The college invested the $600,000 in securities earning dividend and interest income of $17,000, received in cash. The securities have a fair value of $601,000 at the end of the year. Required Prepare journal entries to record the split-interest agreement during the current year. Pauline Doyle's life expectancy is 20 years, and the annual discount rate is 3 percent. Round answers to the nearest dollar, when appropriate

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