Assume that a discretionary trust has the same income and expenses in 2020-21 as the trust described
Question:
Assume that a discretionary trust has the same income and expenses in 2020-21 as the trust described in the above example. Assume also that a payment of £5,500 was made to a beneficiary during the year.
(a) Compute the trustees' income tax liability for 2020-21.
(b) Show how the £5,500 received by the beneficiary will be treated in his or her personal tax computation.
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 0% (1 review)
Property income 30200 6900 Interest received 7200 x 10080 Dividends received First 1000 of trust inc...View the full answer
Answered By
Arshad Ahmad
Well, I am really new to tutoring but I truly believe a good student can be a better teacher. I have always been a topper at school. I passed my Chartered Accountancy at a very young age of 23, a rare feat for most of the students. I am really dedicated to whatever work I do and I am very strict regarding deadlines. i am always committed and dedicated to whatever work allotted to me and I make sure it is completed well within deadline and also I try to give my best in whatever I do. Hope we will have a good time studying together.
5.00+
1+ Reviews
10+ Question Solved
Related Book For
Question Posted:
Students also viewed these Business questions
-
Assume that a discretionary trust has the same income and expenses in 2017 -18 as the trust described in the above example. Assume also that a payment of 8,250 was made to a beneficiary during the...
-
KYC's stock price can go up by 15 percent every year, or down by 10 percent. Both outcomes are equally likely. The risk free rate is 5 percent, and the current stock price of KYC is 100. (a) Price a...
-
The following additional information is available for the Dr. Ivan and Irene Incisor family from Chapters 1-5. Ivan's grandfather died and left a portfolio of municipal bonds. In 2012, they pay Ivan...
-
What type of business and industry is Fourevr Enterprises? What products or services do Fourevr Enterprises deliver?
-
One cubic centimeter of water has a mass of 1.00 x 10-3 kg. (a) Determine the mass of 1.00 m3 of water. (b) Biological substances are 98% water. Assume that they have the same density as water to...
-
Why is the high-frequency "tweeter" on a stereo speaker usually much smaller than the low-frequency "woofer"?
-
Edward Entrepreneur has an idea for a new business venture. He has designed an electronic gizmo, the Wonder Cleaner, to assist with routine household chores. Edward wants to set up a corporation to...
-
This information relates to Crisp Co. 1. On April 5, purchased merchandise from Frost Company for $28,000, terms 2/10, n/30. 2. On April 6, paid freight costs of $700 on merchandise purchased from...
-
6. To a ground observer the block C is moving with v, and the block A with v. B is moving with v relative to C as shown in the figure. Identify the correct statement. (a) V-V =Vo (b)= A C B (c) V+V =...
-
Edward has the following income in 2020-21: He makes a total of 800 of Gift Aid donations during 2020-21. Compute the amount of income tax payable for the year. Bank interest Loan stock interest...
-
An interest in possession trust with one life tenant has the following income in 2020-21: (a) Compute the trustees' income tax liability for 2020-21. (b) How much income does the life tenant receive...
-
Give some examples to show the differences between XML and HTML.
-
Mohali Foods has estimated that fixed costs per month are Rs . 1 1 4 , 8 4 0 and variable costs per unit of sales is 4 2 % . For the month the business anticipates sales of Rs . 3 0 0 , 0 0 0 . What...
-
Q1: Name at least 100 MNC's or MNE's working in Pakistan? Enlist their country of origin and sector in which they work? Q2: How many MNC's does Pakistan have i meant to say they belong to Pakistan?...
-
The Pallon Company manufactures a variety of handerated bed frames. The company's manufacturing activitiesor the current Sear follow:Manufacturing Activity Estimated Cost Cost Driver Used as...
-
Use the following information to answer the question(s) below. Galt Industries has 50 million shares outstanding and a market capitalization of $1.25 billion. It also has $750 million in debt...
-
George Forbes, a Chartered Accountant, operates an accounting office under the name George Forbes, Chartered Accountant. On June 3 0 , 2 0 0 3 , the balance sheet showed Cash $ 3 , 0 0 0 , Accounts...
-
The company has bonds outstanding with a face value of $50,000 and an unamortized premium of $2,350 at the beginning of the year and $2,000 as of the end of the year. Sales (all for cash) were...
-
The following cost information was provided to you for analysis: September 12,000 Units Produced Costs: TIC TAC TOE TING August 10,000 P80,000 70.000 60.000 50,000 How much is the fixed cost per...
-
On 1 January 2019, a company which prepares accounts to 31 December grants "share appreciation rights" to 30 of its employees. By virtue of these rights, the employees concerned will become entitled...
-
Baxen is a public limited company that currently uses local accounting standards for its financial reporting. However, the board of directors of Baxen is considering the adoption of IFRS in the near...
-
Assuming that today's date is 1 January 2023, calculate the present value of each of the following (using a discount rate of 7% in each case): (a) 50,000 to be received on 1 January 2026 (b) 100,000...
-
1. Prepare journal entries to record each of the December transactions and events for Business Solutions. 2-a. Prepare adjusting entries to reflect a through f 2-b. Post the journal entries to record...
-
The FOMC of the U.S. Federal Reserve, December of 2025, provides the following median forecast for year-end 2026: FOMC Expectations Inflation Unemployment FOMC Parameters 2% 5% a for Taylor Rule 0.5...
-
Charlotte De Jesus is married to Carlos, an MBA graduate, and a strategic planner with expertise in finance. Charlotte is a mother of three; Charles who is 17 years old, Rose who is 15, and Nicole...
Study smarter with the SolutionInn App