Pepa Madrigal has operated a very successful bakery for 30 years and has accumulated investments that earn
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Pepa Madrigal has operated a very successful bakery for 30 years and has accumulated investments that earn an annual interest income of $40,000. Her other income put her in the top income tax bracket for personal tax purposes. She has a son, Antonio who is 22 years old and currently has no income. Antonio's only personal tax credit is the personal tax credit. Determine the amount of federal income taxes that could be saved by transferring the interest-earning investments to the trust with Antonio as the income beneficiary, assuming that the trust will be required to distribute all of its income each year.
Related Book For
Engineering Economic Analysis
ISBN: 9780195168075
9th edition
Authors: Donald Newnan, Ted Eschanbach, Jerome Lavelle
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