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C: 1 4 - 3 2 Determination of Taxable Income and Tax Liability. A simple trust has the following receipts and expenditures for 2 0
C: Determination of Taxable Income and Tax Liability. A simple trust has the following receipts and expenditures for The trust instrument is silent with respect to capital gains, and state law concerning trust accounting income follows the Uniform Act. Assume the trustees fee is charged equally to income and to principal.
Corporate bond interest $
Taxexempt interest $
Longterm capital gain $
Trustees fee $
Distribution to beneficiary $
a What is the trusts taxable income under the formula approach of Figure C:
b What is the trusts tax liability?
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