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

1 Expert Approved Answer
Step: 1 Unlock

The detailed answer for the above question is provided below SOLUTION To determine the taxable incom... View full answer

blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!