The Trotter Trust has the receipts and expenditures listed below for the current year. Assume the Uniform
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The Trotter Trust has the receipts and expenditures listed below for the current year. Assume the Uniform Act (1962) governs an item's classification as principal or income. The trustee's fee is charged one-half to principal and one-half to income.
What is the trust's net accounting income and the maximum amount it can distribute? Assume the trust cannot pay out principal.
Dividends ......... $15,000
Interest on tax-exempt bonds .. 7,000
Loss on sale of capital asset ... (9,000)
Rental income from land ... 1,000
Property taxes on rental property 1,000
Trustee's fee ........ 1,800
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Dividend income 15000 Rental income 1000 ...View the full answer
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Related Book For 
Federal Taxation 2016 Comprehensive
ISBN: 9780134104379
29th Edition
Authors: Thomas R. Pope, Timothy J. Rupert, Kenneth E. Anderson
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