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stealth61 [152]
3 years ago
8

The Allwardt Trust is a simple trust that correctly uses the calendar year for tax purposes. Its income beneficiaries (Lucy and

Ethel) are entitled to the trust's annual accounting income in shares of one-half each.
For the current tax year, Allwardt reports the following.
Ordinary income $100,000
Long-term capital gains 30,000
Trustee commission expense, allocable to corpus 5,000
The trust instrument allocates the capital gain to income.
a. Each beneficiary is entitled to receive income of $_________ .
b. The trust's DNI is $_______ .
c. The trust's Selecttaxable incomelossCorrect 1 of Item 3 is $__________ .
d. Each of the beneficiaries can report _____________ of gross income.
Business
1 answer:
katrin [286]3 years ago
8 0

Answer:

a. Each beneficiary will receive;

= Ordinary income / 2

= 100,000/2

= $50,000

b. Trust's DNI is;

= Accounting income + exemption - long term capital gains

= (Ordinary income + long term gain - commission - personal exemption) + exemption - long term capital gains

= (100,000 + 30,000 - 5,000 - 300) + 300 - 30,000

= $95,000

c. Taxable income = Long term gain - exemption

= 30,000 - 300

= $29,700

d. Each beneficiary can report;

= DNI/ 2

= 95,000/2

= $47,500

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4 years ago
What is meant by post script?​
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3 years ago
2. QuickDraw performs drafting services for local builders. At the end of its first year of operations, QuickDraw had performed
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4 0
3 years ago
canceling a contract for a technicality when market prices are falling is considered an acceptable and ethical practice.
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2 years ago
Moss County Bank agrees to lend the Sandhill Co. $455000 on January 1. Sandhill Co. signs a $455000, 6%, 9-month note. The entry
FromTheMoon [43]

Answer:

See below

Explanation:

The journal entry for the issuance of the note proceed is shown below;

Cash A/c Dr $455,000

----------- To Notes payable A/c Cr $455,000

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