Compute the Federal income tax liability for the Valerio Trust. The entity reports the following transactions for the 2016 tax year. The trustee accumulates all accounting income for the year.

Operating income from a business ........................................ $ 500,000

Dividend income, all from U.S. corporations ............................... 30,000

Interest income, City of San Antonio bonds ................................ 40,000

Fiduciary fees, deductible portion .......................................... (15,000)

Net rental losses, passive activity .......................................... (100,000)