Question: The Greens created a complex trust with two beneficiaries. COMPLEX TRUST WITH BENEFICIARIES A AND B Income from interest: $28,000 Capital Gain income: $8,000 Fiduciary
The Greens created a complex trust with two beneficiaries.
COMPLEX TRUST WITH BENEFICIARIES A AND B
Income from interest: $28,000
Capital Gain income: $8,000
Fiduciary fees: $4,000
The trust document allocates fiduciary's fees to trust corpus, along with any capital gains. The trust stipulates that 50% of the trust accounting income be distributed to A, while discretionary distributions can be made to B (received $6,000). Based solely on the fact pattern provided, taxable income of the trust before the distribution deduction is
select one:
a. $20,000
b. $24,000
c. $28,000
d. $31,900
Step by Step Solution
3.48 Rating (178 Votes )
There are 3 Steps involved in it
The detailed answer for the above question is provided below SOLUTION To determine the taxable incom... View full answer
Get step-by-step solutions from verified subject matter experts
