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Henry O'Donnell created an inter vivos trust fund. He owns a large department store in Higgins, Utah. He also owns a tract of land adjacent

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Henry O'Donnell created an inter vivos trust fund. He owns a large department store in Higgins, Utah. He also owns a tract of land adjacent to the store used as an extra parking lot when the store is having a sale and during the Christmas season O'Donnell expects the land to appreciate in value and eventually be sold for an office complex or additional stores. O'Donnell places this land into a charitable lead trust, which will hold the land for 10 years, until O'Donnell's son is 21. At that time, title will transfer to the son. The store will pay rent to use the land during the interim. The income generated each year from this usage will be given to a local church. The land is currently valued at $410,000 During the first year of this arrangement, the trustee records the following cash transactions: $ 69,000 Canh Intleya Rental income cash out flows: Insurance Property taxes Paving considered an extraordinary repair) Maintenance Distribution to income beneficiary $ 4,900 6.900 4,900 8.900 39,000 Prepare all journal entries for this trust fund including the entry to create the trust. (If no entry is required for a transaction/event, select "No journal entry required in the first account field.) View transaction list 1 Record transfer of land to charitable trust. 2 Record rental income. 3 Record insurance costs. 4 Record property taxes. Credit 5 Record land improvements, assuming this payment for paving is made from cash income because no principal cash is held. 6 Record the amount due from trust principal, assuming that the payment has been made from income rather than principal View transaction list x 3 Record insurance costs. 4 Record property taxes. 5 Record land improvements, assuming this payment for paving is made from cash income because no principal cash is held. 1 6 Record the amount due from trust principal, assuming that the payment has been made from income rather than principal. Credit 7 Record the maintenance expense. 8 Record distribution of income to beneficiary. Note : journal entry has been entered Record entry Clear entry View general Journal

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