Exercise 28-12 (Algorithmic) (LO. 1) The entity reports the following transactions for the 2019 tax year. The trustee accumulates all accounting income for the year. $665,000 Operating income from a business Dividend income, all from U.S. corporations 39,900 Interest income, City of San Antonio bonds 5,320,000 (19,950) Fiduciary fees, deductible portion Net rental losses, passive activity (133,000) Click here to access tax table for this problem. Carryout the tax computations to two decimal places and 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 $ 39,900 The fiduciary taxable income taxed at ordinary rates for the Valerio Trust is $ 644,950 The Federal income tax liability for the Valerio Trust is $ 244,969 X. Feedback Check My Work Congress's desire to stop trusts from being used as income-shifting devices has made the fiduciary entity the highest-taxed taxpayer in the Code. Check My Work 3 more Check My Work uses remaining. Previous Next