25 May Question 1. The PrakashTrust isrequired topayits entireannual accountingincome tobeneficiaries Sa
Question
1. The PrakashTrust isrequired topayits entireannual accountingincome tobeneficiaries Samand Janet.The trust’spersonalexemption is:
a. $0.
b.$100.
c. $300.
d.$600.
2. The PrakashTrustis requiredtopay itsentireannual accountingincometo theDaytonaMuseum, aqualifying charity.Thetrust’spersonalexemptionis:
a. $0.
b.$100.
c. $300.
d.$600.
3. The Rodriguez Trust generated $300,000 in alternative minimum taxable income (AMTI) this year. The trust is subject to a marginal Federal income tax rate of:
a. 26%.
b.28%.
c. 33%.
d.35%.
4. ThetrusteeoftheEpsilonTrustdistributedanassettoTelly,aqualifyingincomebeneficiary.Theasset’sbasistothetrustwas$10,000,anditsfairmarketvalueonthedistributiondatewas$25,000.Whichofthefollowingstatementsistrue?
a. Assumingthat thetrustee madean electionunder §643(e),thetrustisalloweda$10,000 distribution deduction forthistransaction.
b. Assumingthat thetrustee madean electionunder §643(e),Tellyrecognizes$10,000grossincomeonthe distribution.
c. Lackingany electionby thetrustee, thetrust recognizes$15,000gross incomeon thedistribution.
d. Lackingany electionby thetrustee, Telly’sbasis inthe assetis $10,000.
e. Lackingany electionby thetrustee, Telly’sbasis inthe assetis steppedup to$25,000.
5. Threemonths afterBriannaTimkin died,her executorreceived thefinal$40,000 installmentfrom asaleoflandthatBrianna completedseveralyearsago.Whichofthefollowingstatementsistrue?
a. The$40,000is bothincludedin Brianna’sgross estate,andsubject totaxon herestate’s incometaxreturn.
b. The$40,000issubjecttoneitherincomenorestatetax,becauseitwasreceivedafterBrianna’sdeath.
c. The$40,000 issubject totax onlyonher estate’sincome taxreturn.
d. The$40,000 isincluded onlyin Brianna’sgross estate.
6. Incomebeneficiary Turkreceived $30,000from theUrgentTrust. Trustaccounting incomeforthe yearwas $100,000. Thetrustgenerated$20,000incostrecoverydeductions.HowmuchcanTurkdeductwithrespecttothecostrecoverydeductions thatUrgentgenerated?
a. $0.
b.$6,000.
c. $14,000.
d.$20,000.
7. ThreeweeksafterAbeddied,hisbrotherTony properlyreceivedAbed’slastpaycheckfromhis employer.Thegrossamountofthecheckwas$4,000,anda$300deductionforstateincometaxeswassubtractedincomputingthenetamountofthepayment. Whichofthefollowingstatementsistrue?
a. The$300 isdeductible onneitherTony’s incometaxreturn noronAbed’s estatetaxreturn.
b. The$300is deductiblebothon Tony’sincome taxreturnand onAbed’s estatetaxreturn.
c. The$300is deductibleonly incomputing Abed’staxable estate.
d. The$300 isdeductible onlyon theincome taxreturn ofAbed’s estate.
8. The ChenTrustincurredthefollowingitems duringtheyear.
| Taxable interestreceived | $40,000 |
| Tax-exemptinterest received | 60,000 |
| Taxpreparationfees paid | 5,000 |
| WhatisChen’sdeductionforthetaxpreparationfees?
a. $0. |
|
| b.$2,000. | |
| c. $3,000. | |
| d.$5,000. |
9. Which,if any,of thefollowing statementsrelates tothe taxtrea
Our website has a team of professional writers who can help you write any of your homework. They will write your papers from scratch. We also have a team of editors just to make sure all papers are of HIGH QUALITY & PLAGIARISM FREE. To make an Order you only need to click Ask A Question and we will direct you to our Order Page at WriteDemy. Then fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Fill in all the assignment paper details that are required in the order form with the standard information being the page count, deadline, academic level and type of paper. It is advisable to have this information at hand so that you can quickly fill in the necessary information needed in the form for the essay writer to be immediately assigned to your writing project. Make payment for the custom essay order to enable us to assign a suitable writer to your order. Payments are made through Paypal on a secured billing page. Finally, sit back and relax.
About Writedemy
We are a professional paper writing website. If you have searched a question and bumped into our website just know you are in the right place to get help in your coursework. We offer HIGH QUALITY & PLAGIARISM FREE Papers.
How It Works
To make an Order you only need to click on “Order Now” and we will direct you to our Order Page. Fill Our Order Form with all your assignment instructions. Select your deadline and pay for your paper. You will get it few hours before your set deadline.
Are there Discounts?
All new clients are eligible for 20% off in their first Order. Our payment method is safe and secure.