tax 2020

Dividend income, all qualified U.S. stocks	$10,000
Taxable interest income	50,000
Tax-exempt interest income	20,000
Net long-term capital gain, incurred 11/1	25,000
Trustee's fees	6,000

Under the terms of the trust instrument, cost recovery, net capital gains and losses, and fiduciary fees are allocable to corpus. The trustee is required to distribute $25,000 to Marcus every year. For the year, the trustee distributed $40,000 to Marcus and $40,000 to Marcus's sister, Ellen Hayes. No other distributions were made.

In computing DNI, the trustee properly assigned all of the deductible fiduciary's fees to the taxable interest income.

The trustee paid $4,000 in estimated taxes for the year on behalf of the trust. Any resulting refund is to be credited to the next tax year. The exempt income was not derived from private activity bonds.

The trust was created on December 14, 1953. It is not subject to any recapture taxes, nor can it claim any tax credits. None of its income was derived under a personal services contract. The trust has no economic interest in any foreign trust. Its Federal identification number is 11-1111122.

Round to any division to six decimal places. Round your intermediate computations and final answers to the nearest dollar. Enter all amounts as positive numbers.

Item	Totals	Accounting Income	Taxable Income	Distributable Net Income/Distribution Deduction
Dividend income	$fill in the blank a8e1bb07707e078_1	$fill in the blank a8e1bb07707e078_2	$fill in the blank a8e1bb07707e078_3
Taxable interest income	fill in the blank a8e1bb07707e078_4	fill in the blank a8e1bb07707e078_5	fill in the blank a8e1bb07707e078_6
Exempt interest income	fill in the blank a8e1bb07707e078_7	fill in the blank a8e1bb07707e078_8
Net long-term capital gain	fill in the blank a8e1bb07707e078_9		fill in the blank a8e1bb07707e078_10
Fiduciary fees	fill in the blank a8e1bb07707e078_11		(fill in the blank a8e1bb07707e078_12)
Personal exemption	(fill in the blank a8e1bb07707e078_13)
Accounting income/Taxable income before the distribution deduction	$fill in the blank a8e1bb07707e078_14	$fill in the blank a8e1bb07707e078_15	$fill in the blank a8e1bb07707e078_16
	STEP 1	STEP 2
Exemption		fill in the blank a8e1bb07707e078_17
Corpus capital gain/loss	(fill in the blank a8e1bb07707e078_18)
Net exempt income		fill in the blank a8e1bb07707e078_19
Distributable net income	Taxable portion $fill in the blank a8e1bb07707e078_20	$fill in the blank a8e1bb07707e078_21
-fill in the blank a8e1bb07707e078_22
$fill in the blank a8e1bb07707e078_23
Distribution deduction	(fill in the blank a8e1bb07707e078_24) STEP 3	Lesser of $fill in the blank a8e1bb07707e078_25distributed or $fill in the blank a8e1bb07707e078_26taxable DNI distributed
Entity taxable income	$fill in the blank a8e1bb07707e078_27 STEP 4

STEP 5: Allocate DNI

STEP 5:			Income Type
Beneficiary Taxation	Amount Received	DNI Received	Interest Income	Exempt Interest	Dividend Income
Totals	$fill in the blank a8e1bb07707e078_28	$fill in the blank a8e1bb07707e078_29	$fill in the blank a8e1bb07707e078_30	$fill in the blank a8e1bb07707e078_31	$fill in the blank a8e1bb07707e078_32
Marcus	$fill in the blank a8e1bb07707e078_33	$fill in the blank a8e1bb07707e078_34	$fill in the blank a8e1bb07707e078_35	$fill in the blank a8e1bb07707e078_36	$fill in the blank a8e1bb07707e078_37
Ellen	$fill in the blank a8e1bb07707e078_38	$fill in the blank a8e1bb07707e078_39	$fill in the blank a8e1bb07707e078_40	$fill in the blank a8e1bb07707e078_41	$fill in the blank a8e1bb07707e078_42

Answer rating: 100% (QA)

Based on the provided sources here is a summary of corporate income t... View the full answer