Briefly summarize the differences between principal and income transactions for estates and trusts . Why is the classification important in estate and trust accounting ?

Q: When recording the inventory of an estate, the assets of the estate are recorded net of the…

A: Inventory is regarded as the items that are kept in a business that are used for sales or the…

Q: What assets are normally included as estate properties?

A: Probate laws: After the death of a decedent, in order to seek the problems of how his property…

Q: accounting income and taxable income?

A: Accounting Income -: Accounting Income is the revenue a firm earns or keeps after paying off all…

Q: Determine the gross estate under absolute community of property for the following properties.

A: Absolute community of property means the ownership of property that is due to the marriage alliance…

Q: Attribute Estate Trust Separate income tax entity Controlling document Can have both income and…

A: Estate is an area which comprises of land or even some building like house or office constructed on…

Q: At what value are the assets within an estate reported?

A: Assets: Assets are those items that provide value for money and future economic benefit for an…

Q: Gains and losses derived from sale or exchange of ordinary assets are included in the computation of…

A: Ordinary assets are those assets or the properties used in the trade or business which is primarily…

Q: Required: Determine the net taxable estate and the estate tax due.

A: Mr Lago A Philippines resident died on 30th Nov., 2020. We are given a list of the properties owned…

Q: liquidate t

A: At the time of liquidation we have used Realisation account to show the surplus of deficit. We need…

Q: Types of Trusts?

A: The types of trusts as follows: Living trust: One of the usually shaped trust is an inter vivos…

Q: 5. Income received by the estate during the period of administration or settlement of the estate,…

A: As per the Tax code of the Philippines, Chapter X (Estates and trusts), the tax imposed by this…

Q: Outline the anti-avoidance provisions as they relate to the transfer of property to a child, a…

A: General Anti-avoidance Rule (GAAR) is a concept which generally empowers the Revenue Authority in a…

Q: What do the financial statements of the acquirer include?

A: In consolidation or merger or acquisition there is an acquirer and an acquiree The acquire purchases…

Q: Define Charitable remainder trust.

A: Trust: Trust is normally created by the decent person that establishes a trust that holds the…

Q: What transactions are normally viewed as changes in the principal of an estate? What transactions…

A: Change in Principal:  The most common adjustments to the principal of the estate are:  Improvement…

Q: Briefly summarize the differences between principal and income transactions for estates and trusts.…

A: one important accounting concept is the differences between principal and income of estate or…

Q: Explain the distinction/s between custodial funds and trust funds. What financial statements…

A:

Q: What is the role of trusts in estate planning?

A: The process of managing the assets of an individual or an organization until the death of the…

Q: Why is the distinction between principal and income so important in accounting for most trusts?

A: Meaning of trusts A trust refers to a legal arrangement between the trustee or third party and the…

Q: How to calculate the inheritance amount?

A: Inheritance Tax is a tax on the all property, possessions and money of someone who has died. In the…

Q: Explain the Sheriff’s Deed-Trustee’s Deed?

A: Sheriff’s Deed:   It serves to specify the concern(s) of people whose asset was traded at an open…

Q: What are the best steps in a taxation law assignment to step through residency and source, and also…

A: To determine the tax income of an individual is o the basis of whether the individual in the status…

Q: What are the general requirements regarding income, investments, and dividends with which a REIT…

A: Introduction: Real estate investment trust is a company that owns or primarily operates real estate…

Q: Describe the financial statements and journal entries utilized to account for estate and trust…

A:

Q: If an entity wants to account for investment property, it may choose between two accounting models.

A: The valuation of investment property is a must have feature in the presentation of the company’s…

Q: What deductions are allowed in computing estate income taxes?

A:

Q: How much must be received by the creditors, respectively

A: In the event of bankruptcy, creditors are paid in a proper order prescribed. First secured creditors…

Q: Are deeds the only acceptable way to legally transfers a property? Why or not?

A: The deed is legal document that is valid and is paid value and legally binding documents.

Q: Why are claims against an estate put into an order of priority? To help the executor determine the…

A: There is a rule followed when someone passes away. The deceased assets are secured and distributed…

Q: income taxation of estates from the income taxation of trusts?

A:

Q: Describe the procedure to incorporate the tax effects of gains (or losses) whenever an asset is…

A: Asset are considered to be capital items as they are held for more than a year and provide economic…

Q: The basis for determining gain or loss from sale of disposition of property is the fair market price…

A: The basis for any property which is inherited from any decedent who died during current tax year is…

Q: What claims have priority to the distributions made by an estate?

A: Probate laws: After the death of decedent, in order to seek the problems of how his property should…

Q: Explain and account for the distinction between principal and income in the context of estate and…

A:

Q: What can be understood from Probate laws?

A: Probate law: After the death of the decedent how his property should be located, how his debts are…

Q: Valuation is applied to this specific object so that a proper computation of rental charges can be…

A: It's true valuation is made of some object like building, office, machines or land etc. All these…

Q: Determine the amount of recognized gain or loss. Explain whether the gain or loss is capital or…

A: Recognized Gain/loss on asset  = 325,000+196,000-605,000-27,000+315,000 = 204,000

Q: Which of the following transfers is subject to estate tax? a. Transfer passing under general power…

A: Estate Tax- Estate taxes are levied on the transfer of a deceased person's estate to another person…

Q: If an amount is ordinary income to a recipient: O it must also be a capital gain O It may also be…

A: "Since you have asked multiple question we will solve the first question for you.  If you want any…

Q: re heirs oblige/responsible/liable to file and pay for the Estate Tax of the Estate?

A: Estate Tax is the tax due on the estate of a deceased within 9 months of his/her death.

Q: What court will be responsible to hear the case a lawsuit based on dispute of real estate an…

A: There is judiciary system for every type of issues faced by the common people. There is a particular…

Reasons for Estate Planning

Planning is a process that helps decide in advance about future activities and operations. Planning helps to draft the procedures by identifying, analyzing, and designing how to work, when to work, by whom should be done, and what has to be done. It is the primary step followed by a person, business organizations, institutions, companies, etc.