Corporations, Partnerships, Estates & Trusts Chapter 20: Problems

• < > LO.1 Compute the Federal income tax liability for the Valerio Trust. The entity reports the following transactions for the 2014 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)

• Please complete each problem on a separate tab in the Excel worksheet.