Question

In: Accounting

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

Solutions

Expert Solution

ekkarill92 answered 1 year ago
Next > < Previous

Related Solutions

The Robinson Family Trust is a discretionary family trust with two resident beneficiaries, Tom and grace....
The Robinson Family Trust is a discretionary family trust with two resident beneficiaries, Tom and grace. During this income year of 2019-2020, the activities of the trust gave rise to the following: $ Loss from rental property (3,000) Interest income from term deposits 2,000 Cash received from non franked dividends 9,000 A capital gain from the sale of Telstra’s shares that had been held for three years 8,000 The trustee of the trust resolved to distribute 100% of the trust...
The Robinson Family Trust is a discretionary family trust with two resident beneficiaries, Tom and grace....
The Robinson Family Trust is a discretionary family trust with two resident beneficiaries, Tom and grace. During this income year of 2019-2020, the activities of the trust gave rise to the following: $ Loss from rental property (3,000) Interest income from term deposits 2,000 Cash received from non frankeddividends 9,000 A capital gain from the sale of Telstra’s shares that had been held for three years 8,000 The trustee of the trust resolved to distribute 100% of the trust income...
Which of the following items can be allocated to beneficiaries of a trust? A. losses incurred...
Which of the following items can be allocated to beneficiaries of a trust? A. losses incurred on the disposition of trust capital property B. gains resulting from the disposition of trust capital property C. recapture of CCA on the disposition of trust depreciable assets D. Items A, B, and C E. Items B and C
Rosa and Sam Costello are the only two beneficiaries of a discretionary trust created by their...
Rosa and Sam Costello are the only two beneficiaries of a discretionary trust created by their father during his lifetime. Rosa aged 23 years resides in Italy and is a non- resident for Australian tax purposes. Sam aged 16 years is a resident of Australia. During the 2019/20 tax year the trustee received a dividend of $6,300 (net of tax) from a company resident in Italy, on which withholding tax of 10% had been deducted at source, and a fully...
which paragraph indicates the primary and contingent beneficiaries of the trust and the condition under which...
which paragraph indicates the primary and contingent beneficiaries of the trust and the condition under which they will receive income and corpus distributions from the trust
under the current law as trustee of a living trust and trust for minor children, what...
under the current law as trustee of a living trust and trust for minor children, what actions would you take to avoid higher tax rates on net investment income as a result of the provisions of the American Taxpayer Relief Act of 2012 (ATRA)
Geraldine (Gerri) Bowen is a 74-year-old woman living with dementia. Her husband passed away one year...
Geraldine (Gerri) Bowen is a 74-year-old woman living with dementia. Her husband passed away one year ago. He was her primary care giver, although he had contracted for a daily caregiver to help Monday through Friday with Gerri’s activities of daily living and so that he could run errands such as banking, grocery shopping, etc. Since his death, the family (three sons and their wives) set up 24-hour care giving because Gerri wants to live at home and not in...
In its current form, Medicare beneficiaries pay premiums, deductibles and co-pays, unless they are also covered...
In its current form, Medicare beneficiaries pay premiums, deductibles and co-pays, unless they are also covered by Medicaid. Is this appropriate? Should we make Medicare free to everyone over 65? If so how do we pay the cost of this coverage?
FeS can be roasted in O 2 to form FeO, according to the reaction 2FeS +...
FeS can be roasted in O 2 to form FeO, according to the reaction 2FeS + 3O 2 2FeO + 2SO 2 If the slag (solid product) contains 80% FeO and 20% FeS , and the exit gas is 100% SO 2 , determine the extent of reaction and the initial moles of FeS. Use 100 lb as the basis. [0.557; 1.341 lb-mol]
2. The Alright Trust is a simple trust. The annual accounting income is to be distributed...
2. The Alright Trust is a simple trust. The annual accounting income is to be distributed equally to Ben and Sarah. The Trust reports the following: Dividend income Long-term capital gain (allocable to corpus) Trustee allocable to corpus $100,000 30,000 5,000 Compute the following: a. Trust accounting income: b. Total taxable income c.Trust DNI d. Distribution deduction e. Trust taxable income f . Amount and character of income reported by each benefiicary
ADVERTISEMENT
Subjects
ADVERTISEMENT
Latest Questions
ADVERTISEMENT