The entity reports the following transactions for the 2018 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)

Click here to access tax table for this problem. Carryout the tax computation to two decimal places and if required, round the final tax liability to the nearest dollar.

Compute the Federal income tax liability for the Valerio Trust by providing the following amounts:

The amount of the fiduciary's gross income taxed at 20% for the Valerio Trust is $30,000 The fiduciary taxable income taxed at ordinary rates for the Valerio Trust is $484,900 The Federal income tax liability for the Valerio Trust is $ ????

Tax table:

Over. but not over the tax is of the amount over

0 2550 10% 0

2550 9150 255 + 24% 2550

9150 12500 1839 +35% 9150

12500 ....... 3011.5 +37% 12500