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Fact Pattern: Trust M, a simple trust, has dividends of $4,000 and rent receipts of $8,000. It paid fiduciary fees of $1,000. There is depreciation
Fact Pattern:
Trust M, a simple trust, has dividends of $4,000 and rent receipts of $8,000. It paid fiduciary fees of $1,000. There is depreciation of $2,000, but no reserve for depreciation is required. The only beneficiary is single.
Question
What is the beneficiary's increase in taxable income from the trust?
- A.
- $10,000
- B.
- $0
- C.
- $9,000
- D.
- $11,000
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