prts the following transactions for the 2020 tax year. The trustee accum come from a business $500,000 come, all from U.S. corporations 30,000 ate) ome, City of San Antonio bonds 40,000
prts the following transactions for the 2020 tax year. The trustee accum come from a business $500,000 come, all from U.S. corporations 30,000 ate) ome, City of San Antonio bonds 40,000
Chapter28: Income Taxati On Of Trusts And Estates
Section: Chapter Questions
Problem 12CE
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Transcribed Image Text:Exercise 28-12 (LO. 1)
The entity reports the following transactions for the 2020 tax year. The trustee accumulates all accounting income for the year
Operating income from a business
$500,000
Dividend income, all from U.S. corporations
30,000
(20% tax rate)
Interest income, City of San Antonio bonds
40,000
Fiduciary fees, deductible portion
(15,000)
Net rental losses, passive activity
(100,000)
Click here to access tax table for this problem.
Carryout the tax computations to two decimal places and round the final tax liability to the nearest dollar.
Compute the Federal income tax liability for the Valerio Trust by providing the following amounts:
The amount of the fiduciary's gross income taxed at 20% for the Valerio Trust is $
30,000
The fiduciary taxable income taxed at ordinary rates for the Valerio Trust is s
484,900
The Federal income tax liability for the Valerio Trust is $
184,222.45 X.
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