A simple trust has the following receipts and expenditures for 2017. The trust instrument is silent with

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A simple trust has the following receipts and expenditures for 2017. The trust instrument is silent with respect to capital gains, and state law concerning trust accounting income follows the Uniform Act. Assume the trustee€™s fee is charged equally to income and to principal.

Corporate bond interest Tax-exempt interest Long-term capital gain Trustee's fee $40,000 9,000 5,000 2,000 48,000 Distri

a. What is the trust€™s taxable income under the formula approach of Figure C:14-1?

b. What is the trust€™s tax liability?

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Federal Taxation 2018 Comprehensive

ISBN: 9780134532387

31st Edition

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

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Question Posted: Apr 04, 2018 04:24 AM

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A simple trust has the following receipts and expenditures for 2017. The trust instrument is silent with

Question:

Corporate bond interest Tax-exempt interest Long-term capital gain Trustee's fee $40,000 9,000 5,000 2,000 48,000 Distribution to beneficiary

Step by Step Answer:

a Taxable income is 4700 calculated as follows Corporate bond interest 40000 Longterm capital ...View the full answer

Federal Taxation 2018 Comprehensive

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