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

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

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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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 $255,000 Long-term capital gains, allocable to corpus 76,500 Legal and accounting fees, allocable to corpus 12,750 a. How much income is each beneficiary entitled to receive? b. What is the trust's DNI? c. What is the trust's taxable income? d. How much gross income is reported by each of the beneficiaries?
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