Gregory Carson is a 25% income beneficiary of the John Carson trust. This year the trust reported the following income: * $1,500 taxable interest. * $500 tax-exempt interest. * $2,000 qualified dividends. Its only expense was $1,000 in attorney fees. How much taxable interest will Gregory"s Schedule K-1 report? A. $500 B. $375 C. $281 D. $268
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- Mark for follow up Question 57 of 75. The Henry Addison Living Trust is a nongrantor trust with a single beneficiary, Alicia. This year, the trust had distributive income (DNI) of $13,000. After the allocation of deductions, this total includes the following amounts: Net rental income: $10,000. ● Tax-exempt interest: $3,000. Alicia's 2022 distribution was $5,000. How much of Alicia's distribution will be treated as tax-exempt interest? $1,154 $1,500 $3,000 $3,856 Mark for follow up ?nid=6d4c77ee-d986-42b2-b639-13fe1e66d5b5&evalLvl=5&redirect_url=%2fphThe 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 $100,000 Long-term capital gains, allocable to income 30,000 Legal and accounting fees, allocable to corpus 5,000 The trust instrument allocates the capital gain to income. 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/loss?The trust's ______ (taxable income/loss) is ____ d. How much gross income is reported by each of the beneficiaries?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?
- The trustee of the Pieper Trust can distribute any amount of accounting income and corpus to the trust’s beneficiaries, Lydia and Avi. This year, the trust incurred the following. Taxable interest income $40,000Tax-exempt interest income 20,000Long-term capital gains—allocable to corpus 80,000 Legal and accounting fees—allocable to corpus 9,000 The trustee distributed $26,000 to Lydia and $13,000 to Avi. What is Pieper’s trust accounting income? What is Pieper’s DNI? What is Pieper’s taxable income? What amounts are taxed to each of the beneficiaries?This year, the Huang Trust is a complex trust. This year, it distributed all of its accounting income and $5,000 from corpus, to its sole income beneficiary Kun. Huang's taxable income for the year is: a.$0. b.($300). c.($100). d.($5,000)In 2020, Bongbong Jr. created two (2) trusts for his minor son, Chiz. During the year, the two trusts earned net income as follows: Trust 1: P4,000,000 Trust 2: P6,000,000 How much is the income tax due of Trust 1? Nil P1,244,000 P1,266,000 P1,263,440
- The allwardt trust is a simple trust that correctly uses the calander year for tax purposes. It's income beneficiaries (Lucy and Ethel) are entitled to the trusts annual accounting income it shares of one-half each. For the current tax year, allwardt reports the following. Ordinary income $585,000. Long-term capital gains, allocated to corpus $175,500. Legal and accounting fees, allocated to corpus $29,250. What is the trusts DNI? What is the trusts taxable income? How much gross income is reported by each of the beneficiaries?The Dolce Estate reports the following items for the current tax year. Dividend income $ 50,000Taxable interest income 8,000 Passive activity income 30,000 Tax-exempt interest income 12,000 Distributable net income $100,000 Dolce’s two noncharitable income beneficiaries, Brenda and Dev, receive cash distributions of $20,000 each. How much of each class of income is deemed to have been distributed to Brenda? To Dev?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