Determination of Taxable Income A simple trust has the following receipts and expenditures for the current year.

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Determination of Taxable Income A simple trust has the following receipts and expenditures for the current year. The long term capital gain and trustee’s fees are part of principal.

Dividends ................................$20,000

Long-term capital gain ............15,000

Trustee’s fees .............................1,500

Distribution to beneficiary .....20,000

a) What is the trust’s taxable income under the formula approach of figure C?

b) What is the trust’s taxable income under the short cut approach?

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Federal Taxation 2016 Comprehensive

ISBN: 9780134104379

29th Edition

Authors: Thomas R. Pope, Timothy J. Rupert, Kenneth E. Anderson

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Question Posted: Apr 13, 2012 07:10 AM

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Determination of Taxable Income A simple trust has the following receipts and expenditures for the current year.

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a Computation of the trusts taxable income under the formula approach of figure C Particulars Amount ...View the full answer

Federal Taxation 2016 Comprehensive

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