Private universities, annuity and life income. Record the following annuity and life income activities of Private University: 1. On July 1, 2019, R. W. Fields, emeritus professor of accounting, moved...

Private universities, annuity and life income. Record the following annuity and life income activities of Private University:

1. On July 1, 2019, R. W. Fields, emeritus professor of accounting, moved out of the state. Fields donated to the university common stock with a cost basis of $40,000 and a fair value of $90,000. Fields is to receive an annuity of $6,000 each year for life; at death, the securities are to be sold and the remaining cash balance is to be transferred to the student loan fund. At a 10% annual rate and a life expectancy of 12 years, the present value of the annuity payments is $34,068.