Form 1041 Hathway Living Trust - 2 beneficiaries - Geraldine Hathway & Constance Hathway - according...

Form 1041 Hathway Living Trust - 2 beneficiaries - Geraldine Hathway & Constance Hathway - according to the trust agreement, the income should be distributed annually to the beneficiaries. In addition to the income distributions, the beneficiaries are each entitled to a $10,000 distribution. The trust had the following income and expenses during the year:

$6,000 Interest Income, $2,500 Municipal interest, $6,000 Ordinary and Qualified dividends, $18,000 Gain on capital assets - Expenses - $2,500 Fiduciary fees, $500 Tax preparation fees.

The trust sold 500 shares of ABC Company stock during 2015. See the information below:

$36,000 Cost Basis, 3/17/1990 Acquisition Date, $54,000 Sales Price, 8/15/2015 Sales Date.

1. What is the taxable income for 2015? A. $11,500, B. $17,700, C. $17,900, D. $18,000

2. What is the fiduciary income for 2015? A. $11,500, B. $18,000, C. $30,000, D. $32,500

3. What is the income distribution deduction reported on Schedule B, line 15? A. $9,431, B. $11,500, C. $17,931, D. $18,000

4. What is the gross income for 2015? A. $11,500, B. $18,000, C. $30,000, D. $32,500

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ekkarill92 answered 1 year ago

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