Dividends $20,000 Long-term capital gain 15,000 Trustee’s fees 1,500 Distribution to beneficiary 20,000 A simple trust has the following receipts and expenditures for the year. The trust instrument classifies gains, losses, and trustee’s fees part of the principal.

SWFT Comprehensive Volume 2019
42nd Edition
ISBN:9780357233306
Author:Maloney
Publisher:Maloney
Chapter28: Income Taxati On Of Trusts And Estates
Section: Chapter Questions
Problem 15CE
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Dividends

$20,000

Long-term capital gain

15,000

Trustee’s fees

1,500

Distribution to beneficiary

20,000

  1. A simple trust has the following receipts and expenditures for the year. The trust instrument classifies gains, losses, and trustee’s fees part of the principal.

What is the trust’s taxable income?

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