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Acc565 Chapter 14 Homework Assignment

# Acc565 Chapter 14 Homework Assignment - Problem C:14-39 A...

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Problem C: 14-31 A. What is the trust's taxable income under the formula approach of figure C:14-1? Dividends \$20,000.00 Long-term capital gains \$15,000.00 Minus: Trustee's Fees \$(1,500.00) Distribution Deduction \$(18,500.00) Personal Exemmption \$(300.00) Taxable Income \$14,700.00 B. What is the trust's income under the short-cut approach? Long-term Capital Gain \$15,000.00 Minus: Personal exemption \$(300.00) Taxable Income \$14,700.00 Problem C:14-36 Roy should report \$80,000*0.6= \$48,000 Sandy should report \$80,000*0.4=\$32,000 Problem C:14-38 What is the trust's net accounting income and the maximum amount it can distribute? Income Dividends 15,000.00 Interest Income 7,000.00 Rental Income 6,000.00 Gross Profit 28,000.00 Expenses: Property Taxes (1,000.00) Trustee's Fees (900.00) Total Expenses (1,900.00) Net Income 26,100.00 The maximum amount that can be distributed is the net income \$26,100.
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Unformatted text preview: Problem C:14-39 A. What is the deductible portion of the trustee's fees? 1350 B. What is the trust's taxable income exclusive of the distribution deduction? Diviends 15,000.00 Rental Income 6,000.00 Minus Trustee's Fees (1,350.00) Property Taxes (1,000.00) Personal Exemption (300.00) Taxable Income 18,350.00 C. What is the trust's DNI? Taxable Income 18,350.00 Personal Exemption 300.00 Tax-exempt Income 6,550.00 DNI 25,200.00 D. What is the trust's taxable income using the formula approach of Figure C:14-1? Dividends 15,000.00 Rental income 6,000.00 Minus: Property Taxes (1,000.00) Trustee's Fees (1,350.00) Distribution Deduction (18,650.00) Personal Exemmption (300.00) Taxable Income (300.00)...
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