mc_q_52 - Interest expense on money borrowed to acquire...

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MULTIPLE CHOICE QUESTIONS Q52. Upon his death in 2004, Mr. Allen's will provided for the creation of a trust. The will required that the income from the trust be distributed: 50% to his wife; and 12½% to each of his four children. During 2010, the trust had the following income: Cash dividends from Canadian public corporations $20,000 Interest from Canadian sources 10,000
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Unformatted text preview: Interest expense on money borrowed to acquire shares 1,000 For the 2010 year, the beneficiaries and the trustees jointly agreed that all but $5,000 of the interest received by the trust would be included in the beneficiaries' income. What is the taxable income to Mrs. Allen for the 2010 year from the trust? (a) $14,500 (b) $12,000 (c) $12,500 (d) $15,000...
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This note was uploaded on 02/05/2011 for the course ACTG 4720 taught by Professor Gaildrory during the Winter '11 term at York University.

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