Sanaeil Center for Education, a nonprofit organization, learns that it has been named as the remainder beneficiary of an irrevocable charitable remainder trust. When the donor dies, the trust income will be distributed to the donor's spouse until their death, at which point the nonprofit is expected to receive the beneficial interest, with an estimated actuarial value of $500,000 as a permanent endowment. What journal entry would the nonprofit organization record at the time the irrevocable trust is created?
Sanaeil Center for Education, a nonprofit organization, learns that it has been named as the remainder beneficiary of an irrevocable charitable remainder trust. When the donor dies, the trust income will be distributed to the donor's spouse until their death, at which point the nonprofit is expected to receive the beneficial interest, with an estimated actuarial value of $500,000 as a permanent endowment. What journal entry would the nonprofit organization record at the time the irrevocable trust is created?
Chapter28: Income Taxati On Of Trusts And Estates
Section: Chapter Questions
Problem 16CE
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Transcribed Image Text:Sanaeil Center for Education, a nonprofit organization, learns that it has been named
as the remainder beneficiary of an irrevocable charitable remainder trust. When the
donor dies, the trust income will be distributed to the donor's spouse until their
death, at which point the nonprofit is expected to receive the beneficial interest,
with an estimated actuarial value of $500,000 as a permanent endowment. What
journal entry would the nonprofit organization record at the time the irrevocable
trust is created?
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ISBN:
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Author:
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Publisher:
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