Question
The Hallway Living Trust (EIN 64-6499004) is a trust established for the bene t of two bene ciaries: Geraldine Hallway 7806 East Washington Lane 9510
The Hallway Living Trust (EIN 64-6499004) is a trust established for the bene t of two bene ciaries: Geraldine Hallway
7806 East Washington Lane 9510 Samson Road Your City, YS XXXXX
SSN: 747-64-4001
Constance Hallway
9510 Samson Road Your City, YS XXXXX Your City, YS
SSN: 747-64-4002
According to the trust agreement, the income should be distributed annually to the bene ciaries.
In addition to the income distributions, the bene ciaries are each entitled to a $10,000 distribution. The trust had the following income and (expenses) during the year: Interest income: $ 6,000
Municipal interest income: $ 2,500
Ordinary and quali ed dividends: $ 6,000
Gain on capital assets: $18,000
Fiduciary fees: ($ 2,500)
Tax preparation fees: ($ 500)
1) What amount of qualified dividends is allocable to the trust for 2016?
A) $600
B) $1,284
C) $4,716
D) $6,000 '
2) Based on the distribution information provided in the case study, what type of trust is the Hallway Trust for 2016?
A) Complex.
B) Simple.
C) Grantor.
D) Charitable.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started