A trust has the following net income.Franked dividends - $10,000Franking Credits - $3500Capital gain - no discount applies - $70,000Rental income - $105,000Rental deductions - $35,000Beneficiary X is specifically entitled to franked dividends and credits and Beneficiary Y isspecifically entitled to the Capital Gain. The trust income under The Division 6 trust incomewill beand the Division 6E trust income will be

Here's a detailed explanation of how the Division 6 trust income and Division 6E trust income were…

Answered: A trust has the following net income.…

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter28: Income Taxati On Of Trusts And Estates

Section: Chapter Questions

Problem 23P

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Use the following information to complete the chart below, indicating the Calvet Trust's entity accounting income for each of the alternatives. Interest income, taxable $300,000 Interest income, tax-exempt 30,000 Interest income, tax-exempt but AMT preference item 20,000 Long-term capital gain 40,000 Trustee fee 10,000 Trust Agreement Provisions Trust AccountingIncome Fees and capital gains allocable to corpus Capital gains allocable to corpus, one-half of fees allocable to income Capital gains allocable to income, silent concerning allocation of fees Fees and exempt income allocable to corpus, silent concerning allocationof capital gain/loss
A trust has $7000 in interest income, $5000 in tax exempt interest income, $4000 in dividend income and $3000 in capital gains. The trust only expense was $2000 in fiduciary fees. What is the allocation of fiduciary fees to principle an income?
A trust has $7000in interest income. $5000 in tax exempt interest income. $4000 in dividend income and $3000 in capital gains. The trust only expense was $2000 in fiduciary fees. What is the allocation of fiduciary fees to principal income? 1. $0 allocable to principal; $2000 allocable to income 2. $400 allocable to principal; $1600 allocable to income 3. $1600 allocable to principal; $400 allocable to income 4. $2000 allocable to principal; $0 allocable to income
Please show the works
6 - Which of the following transactions does the above record belong to? a) Capital increase B) Adding profit to capital NS) Capital commitment D) Capital reduction TO) Fulfilling the capital commitment
Problem 28-22 (Algorithmic) (LO. 2, 3) The Allwardt Trust is a simple trust that correctly uses the calendar year for tax purposes. Its income beneficiaries (Lucy and Ethel) are entitled to the trust's annual accounting income in shares of one-half each. For the current tax year, Allwardt reports the following. Ordinary income Long-term capital gains, allocable to corpus Trustee commission expense, allocable to corpus a. How much income is each beneficiary entitled to receive? 399,750 X b. What is the trust's DNI? 768,750 X c. What is the trust's taxable income? 674,200 X d. How much gross income is reported by each of the beneficiaries? 337,100 X $615,000 184,500 30,750
This year, the Jackson Miller Trust earned the following: $4,000 in ordinary dividends. • $500 in interest income. • $1,500 in municipal interest. The only expenses were $1,000 in fiduciary fees. What portion of the fiduciary fees are deductible? O $1,000 O $750 O $667 O $0
rrrrrrr
Statement 1: Proceeds of life insurance received by the beneficiary of the insured is a return on capital. Statement 2: The excess of proceeds over total premiums paid which is received by the beneficiary of the insured decedent is gross income and is taxable. * a. Both statements are true b. Both statements are false c. Only statement 1 is true d. Only statement 2 is true
Subjectb: Accounting
A-7
(Based on Appendix B) LTV Corporation grants SARs to key executives. Upon exercise, the SARs entitleexecutives to receive either cash or stock equal in value to the excess of the market price at exercise over theshare price at the date of grant. How should LTV account for the awards?

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