Questions from Federal Taxation

Q: Refer to Problem C:14-30. How would your

Refer to Problem C:14-30. How would your answer to Part a change if the trust in addition received $8,000 interest from tax-exempt bonds, and it distributed $28,000 instead of $20,000? Data From prob...

Q: A simple trust has the following receipts and expenditures for 2017.

A simple trust has the following receipts and expenditures for 2017. The trust instrument is silent with respect to capital gains, and state law concerning trust accounting income follows the Uniform...

Q: During the current year, a simple trust has the following receipts

During the current year, a simple trust has the following receipts and expenditures. The Uniform Act governs the accounting classification. Corporate bond interest…………..$60,000 Long-term capital gain...

Q: A trust has net accounting income of $24,000 and

A trust has net accounting income of $24,000 and incurs a trustee’s fee of $1,000 in its principal account. What is its distribution deduction under the following situations: a. It distributes $24,00...

Q: A complex trust is authorized to make discretionary distributions of income and

A complex trust is authorized to make discretionary distributions of income and principal to its two beneficiaries, Roy and Sandy. Separate shares are not required. For the current year, it has DNI an...

Q: Refer to Problem C:14-35. How would your

Refer to Problem C:14-35. How would your answer change if the trust instrument required that $10,000 per year be distributed to Sandy, and the trustee also made discretionary distributions of $60,000...

Q: A complex trust is required to distribute $20,000 and

A complex trust is required to distribute $20,000 and $30,000 annually to its beneficiaries, Bart and Thelma, respectively. In addition, it can distribute other amounts at its discretion. In Year 1, i...

Q: The Trotter Trust has the receipts and expenditures listed below for the

The Trotter Trust has the receipts and expenditures listed below for the current year. Assume the Uniform Act governs an item’s classification as principal or income. The trustee’s fee is charged one...

Q: Refer to Problem C:14-38. Assume the trustee

Refer to Problem C:14-38. Assume the trustee must pay out all of its income currently to its beneficiary, Julio. a. What is the deductible portion of the trustee’s fee? b. What is the trust’s taxabl...

Q: Explain to a client the significance of the income and principal categorization

Explain to a client the significance of the income and principal categorization scheme used for fiduciary accounting purposes.