Week 8: Homework Exercise 20-12 (Algorithmic) (LO. 1) The entity reports the following transactions for the 2021 tax year. The trustee accumulates all accounting income for the year. Operating income from a business $555,000 33,300 Dividend income, all from U.S. corporations (20% tax rate) Interest income, City of San Antonio bonds 4,440,000 Trustee fees, deductible portion (16,650) Net rental losses, passive activity (111,000) CO 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 trustee's gross income taxed at 20% for the Valerio Trust is $ 33,300 . The Trustee taxable income taxed at ordinary rates for the Valerio Trust is $ 538,250 The Federal income tax liability for the Valerio Trust is $ 204,130 X. Feedback Check My Work Congress's desire to stop trusts from being used as income-shifting devices has made the trust entity the highest-taxed taxpayer in the Code. The entity reaches the 37 percent marginal Federal income tax rate in 2021 once taxable income exceeds $13,050, so the grantor's ability to shift income in a tax-effective manner is nearly eliminated.