On January 1, 2018, Roque established a trust fund for the benefit of his dear friend, Panelo. Mr. Roque appointed Atty. Jeoff as the trustee. The property transferred to the trust is a piece of land with a dormitory earning rental income. During the year, the trust earned P80,000,000 revenues and incurred expenses of P30,000,000. Out of the trust's income, Atty. Jeoff gave Mr. Panelo P25,000,000 cash. In the same year, Mr. Panelo earned compensation income of P5,000,000. The tax due of the trust is O Nil O P10,500,000 O P8,750,000 O P17,500,000

On January 1, 2018, Roque established a trust fund for the benefit of his dear friend, Panelo. Mr. Roque appointed Atty. Jeoff as the trustee. The property transferred to the trust is a piece of land with a dormitory earning rental income. During the year, the trust earned P80,000,000 revenues and incurred expenses of P30,000,000. Out of the trust's income, Atty. Jeoff gave Mr. Panelo P25,000,000 cash. In the same year, Mr. Panelo earned compensation income of P5,000,000. The tax due of the trust is O Nil O P10,500,000 O P8,750,000 O P17,500,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

Which of the following transfers made by your client will be excluded from the client's total gifts in the year made? A) Made a $20,000 contribution to the Shriner's Hospital, which provides free medical care to children B) Paid a family member $15,000 so she could go to school C) Made a $30,000 gift to the donor's spouse D) Paid a hospital $11,000 for medical services rendered to a friend
-Calvin’s AGI is $110,000. What is his charitable contribution deductions. What is the carryover?
Charles has AGI of $45,000 and has made the following payments related to (1) land he inherited from his deceased aunt and (2) a personal vacation taken last year. State inheritance tax on the land $1,220 County real estate tax on the land 2,330 School district tax on the land 954 City special assessment on the land (new curbs and gutters) 957 State tax on airline tickets (paid on vacation) 216 Local hotel tax (paid during vacation) 293 Calculate the amount of taxes Charles may include in his itemized deductions for the year under the following circumstances: Note: Leave no answer blank. Enter zero if applicable. b. Suppose that Charles holds the land for rent.
-Calvin’s AGI is $54,000. What is the charitable contribution deduction. What is the carryover?
Maribel Munroe created a nongrantor trust in 2017. During 2021, the trust earned $4,000 in ordinary dividends, $1,600 in interest income, and $2,400 in tax-exempt municipal bond interest. The only expenses were $1,800 in fiduciary fees. What portion of the fiduciary fees is deductible? None of the fiduciary fees are deductible. $540 is deductible..
Mr. James Santiago created two (2) trusts designating Atty. Mars Bonafe and the Philippine Trust Company as trustees. The common beneficiary of the two (2) trusts was his son, James II, married, and with two (2) qualified dependent children. The following data were made available for the year 2009: Trust No. 1 Trust No. 2 Gross income P600,000 P700,000 Business expenses 300,000 400,000 Income distribution to beneficiary 100,000 200,000 James Santiago II Gross income P800,000 Business expenses 250,000 Income distribution received, gross of 15% creditable withholding tax 300,000 how much was the tax payable of James Santiago II
For the current year, Gina Hestopolis had adjusted gross income of $100,000. During the year, she contributed a total of $6,000 in cash to her church evenly throughout the year and an additional $3,000 in cash to qualified charities. She also contributed religious artwork with a fair market value of $60,000 and a basis of $20,000 to her church. The church intends to display the religious artwork in the church foyer. If Gina chooses to itemize her deductions, what is the amount of her deductible charitable contribution in the current year?Group of answer choices$9,000. $20,000. $35,400.$60,000.
When Jacob Kohler died unmarried in 2015, he left an estate valued at 7,900,000. His trust directed distribution as follows: $19,000 to the local hospital, $150,000 to his alma mater, and the remainder to his 3 children. Death-related costs and expenses were $15,100 for funeral, $30,000 paid to attorneys, $6,500 paid to accountants, and $35,000 paid to the trustee of his living trust. In addition, debts of $115,000. Calculate the federal estate tax due on his estate.
Bob Terwilliger received $18,351 for his services as financial consultant to the mayor's office of his hometown of Springfield. Bob says that his consulting work was his civic duty and that he should not receive any compensation. So, he has invested his paycheck into an account paying 4.22 percent annual interest and left the account in his will to the city of Springfield on the condition that the city could not collect any money from the account for 180 years. How much money will the city receive in 180 years from Bob's generosity?
Lousia's superannuation balance last year was $1 million and she has contributed a total of $330,100 in non-concessional contributions into her superannuation fund over the last 3 years. What amount of government-contribution is she eligible to receive? O A. $56 O B. $12 O C. SO O D. $15
Colby has decided to make charitable contributions of property this year. He donates a painting (adjusted basis $900, fair market value $40,000) that he previously created to a local art museum (a public charity under section 501(c)(3)). The painting will be exhibited in the museum's modern art collection. His adjusted gross income is $90,000. What is his charitable deduction for this year? Select one: a. $0 b. $900 c. $45,000 d. $40,000
Mrs. Manalo, a resident citizen, deed in his last will and testament, he indicated the following: House and lot, to be adopted son and only heir P5,000,000 Land to a public school 1,000,000 Cash to ABS-CBN Foundation 500,000 The agency to ABS-CBN Foundation was intended for the program expenses of Bantay Bata 163, a non-profit social welfare program of ABS-CBN Foundation. Compute for the gross estate.