Question
The trustee of the Pumpkin Trust can distribute any amount of accounting income and corpus to the trust's beneficiaries, Jack and Jill. This year, the
The trustee of the Pumpkin Trust can distribute any amount of accounting income and corpus to the trust's beneficiaries, Jack and Jill. This year, the trust incurred the following.
| Taxable interest income | $40,000 |
| Tax-exempt interest income | 20,000 |
| Long-term capital gainsallocable to corpus | 80,000 |
| Fiduciary's feesallocable to corpus | 9,000 |
The trustee distributed $26,000 to Jack and $13,000 to Jill. Complete the attached computational template and answer the following four questions. Then provide detailed calculations and support for all answers.
- What is Pumpkin's trust accounting income?
- What is Pumpkin's DNI?
- What is Pumpkin's taxable income?
- What amounts are taxed to each of the beneficiaries?
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The Principles And Practice Of Auditing
Authors: George Puttick, Sandra Van Esch
7th Edition
0702137723, 978-0702137723
