Question
The trustee of the Miguel Trust can distribute any amount of accounting income and corpus to the trusts income beneficiaries, Paula and George. This year,
The trustee of the Miguel Trust can distribute any amount of accounting income and corpus to the trusts income beneficiaries, Paula and George. This year, the trust incurred the following.
| Taxable interest income | 40,000 |
| Tax-exempt interest income | 20,000 |
| Long-term capital gainsallocable to corpus | 10,000 |
| Fiduciarys feesallocable to corpus | 6,000 |
The trustee distributed $40,000 to Paula and $40,000 to George. a. What is Miguels trust accounting income? b. What is taxable income before the distribution deduction? c.. What is Miguels DNI? d. What is the distribution deduction? e. What is Miguels taxable income? f. How much gross income is recognized by each of the beneficiaries?
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Auditing Theory And Practice
Authors: C. William Thomas, Bart Ward, Emerson Henke
3rd Edition
0534920748, 978-0534920746
