Compute the 2019 fiduciary income and Federal income tax for the Blue Trust. Prepare a spreadsheet solution to make your computations. Then complete a Form 1041 for the entity. In addition, determine the amount and character of the income and expense items that each beneficiary must report for the year. Omit any alternative minimum tax computations.

The years activities of the trust include the following

. Dividend income, all U.S. stocks $50,000

Taxable interest income 10,000

Tax-exempt interest income 15,000

Fiduciarys fees 4,000

The trust and Betty both use the calendar tax year. Under the terms of the trust instrument, fiduciarys fees are allocated to income. The trustee must distribute all of the entitys accounting income to Betty Blue by February 15 of the following year. The trustee followed this charge and made no other distributions during the year. Fiduciarys fees were assigned properly as an offset to taxable interest income.

The trust was created on July 8, 2000. There are no tax credits for the year, and none of the entitys income was derived from a personal services contract. The trust has no economic interest in any foreign trust. Its Federal identification number is 11-1111121. The trustee, Hoover State Federal Bank, is located at 49599 Cold Harbor Boulevard, Mountain Brook, AL 35223. Betty lives at 67671 Crestline Road, Birmingham, AL 35212. Her Social Security number is 123-45-6788.