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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

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 $635,000

Dividend income, all from U.S. corporations 38,100

Interest income, City of San Antonio bonds 5,080,000

Fiduciary fees, deductible portion(19,050)

Net rental losses, passive activity(127,000)

Carryout the tax computation to two decimal places and if required, round each of 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 $.

The fiduciary taxable income taxed at ordinary rates for the Valerio Trust is $.

The Federal income tax liability for the Valerio Trust is $

Tax table:

image text in transcribed
Income Tax RatesEstates and Trusts Tax Year 2017 Taxable Income The Tax Is: 15% 5 382.50 + 25% 1,245.00 + 28% 2,127.00 + 33% 3,232.50 + 39.6% Tax Year 201 8 Taxable Income The Tax Is: 10% S 255.00 + 24% 1839.00 + 35% 3,011.50 + 37%

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