1) In its first tax year, the Vasquez Estate generated $50,000 of taxable interest income and $30,000 of tax-exempt interest income. It paid fiduciary fees of $8,000. The estate is subject to a 40% marginal estate tax rate and a 37% marginal income tax rate.

a. How much should the executor assign as a Form 706 deduction for the payment of the fees?

2)The Stoudemire Trust reports $145,000 of net investment income (NII) and $160,000 in net profits from an active business operation for 2019. Stoudemire retains all of the business profits but, under the terms of the trust agreement, distributes $17,400 cash from the NII to its sole beneficiary Marshall.

Round your final answer to the nearest dollar.

The trust's liability under the additional tax on NII is $_______

3) The entity reports the following transactions for the 2019 tax year. The trustee accumulates all accounting income for the year.

Operating income from a business	$545,000
Dividend income, all from U.S. corporations	32,700
Interest income, City of San Antonio bonds	4,360,000
Fiduciary fees, deductible portion	(16,350)
Net rental losses, passive activity	(109,000)

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Carryout the tax computations to two decimal places and round the final tax liability to the nearest dollar.

Compute the Federal income tax liability for the Valerio Trust by providing the following amounts:

The amount of the fiduciary's gross income taxed at 20% for the Valerio Trust is $f32,700 The fiduciary taxable income taxed at ordinary rates for the Valerio Trust is $528,550 The Federal income tax liability for the Valerio Trust is $_____