Only moments before his unexpected death, Ron Johnson settled the Ron Johnson Irrevocable Childrens Trust on May 9, 2004 (EIN: 33-898989).In 2022, the Trust had items of income and expense as follows:

Amount Allocable to

Income Principal

Qualified Dividends $35,000

Non-Qualified Dividends 13,000

Rental Income from Fordmil County Home 48,500

Charitable Gift to Salvation Marines 15,000

Tax-Exempt Interest 17,500

Rental Expenses[1] 4,500

Trustees Fee 800 $ 800

Fee for Preparation of Tax Return 500

Capital Gain on Sale of Corporate Stock[2] 42,000

Distribution of income:

Ronny 18,000

Donny 9,000

In February 2022, the Trustee paid $2,500 for legal services provided by Cleaner and Chemist to evict the tenant residing in the Fordmil County property.The eviction proceeding was completed in May 2022 and a new tenant was promptly placed within the home.

The trust agreement appointed Solomon Bank and Trust as its trustee with broad discretionary authority, including the Trustees authority to distribute income to Ronny and Donny during its 20-year term. The trustee has decided to allocate a portion of the estimated taxes to the beneficiaries this year. The Trust will terminate on May 9, 2024 and the assets will be distributed equally to Ronny and Donny, irrespective of any distributions the beneficiaries received during the life of the Trust (i.e. separate shares are not maintained for Ronny and Donny). The Trustee has never allocated any estimated tax payments to the beneficiaries and the Trust provides that capital gains are to be treated as principal by the Trustee.

[1]The residential rental property is located at: 2288 Taylor Avenue, Fordmil, Michigan 48333. The expenses include: $750 commission paid to real estate management company for managing rental property, $2,000 for depreciation of the property, $250 for maintenance expenses, and $1500 for insurance.

[2]Trustee sold Corporate Stock on May 2, 2022. The stock was purchased for $7,000 on May 2, 2007.