Compute the Federal income tax liability for the Valerio Trust. The entity reports the following transactions for the 2017 tax year. The trustee accumulates all accounting income for the year.
Operating income from a business.......................................$ 500,000
Dividend income, all from U.S. corporations..............................30,000
Interest income, City of San Antonio bonds...............................40,000
Fiduciary fees, deductible portion.........................................(15,000)
Net rental losses, passive activity........................................(100,000)