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Scenario: The Heredia Trust is a complex trust. In Year 3, the Heredia Trust had various items of income and expense as indicated below. Instructions:
Scenario: The Heredia Trust is a complex trust. In Year 3, the Heredia Trust had various items of income and expense as indicated below.
Instructions: For each item below, please indicate how much, if any, should be included in the calculation of distributable net income for Year 3. Enter all items as positive numbers
Item | Amount in DNI | |
1 | Corporate Bond interest received in the amount of $500. | |
2 | Municipal Bond interest received in the amount of $600. | |
3 | A stock that was purchased 2 years ago for $2,500 was sold for $6,500. | |
4 | Rental income of $5,500. | |
5 | Rental expenses of $1,500. | |
6 | Trustee fee in the amount of $2,700 allocated 60% to principal and 40% to income. |
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