Question

In the current year, the Mixon Family Trust had the following income and expense items:

Rental income 104,000, dividends from equity stocks 15,890, tax exempt interest income 23,400, long term capital gains from stocks 43,100 rental operating expenses 33,443 and trustee fees 12,000. Under the trust agreement - all capital gains and 50% of trustee fees are allocated to the principal account. The trustee has to maintain reserve for depreciation equal to tax depreciation deduction for current year of $9,650. The trustee must distribute 20,000 of trust income annually to Janey Mixon and has the discretion to distribute additional amounts of income or corpus to Janey, Jonathan, or Mark Mixon. During the year, the trustee distributed 30,000 to each of the three named beneficiaries.

Calculate amount and character of income distributed to each trust beneficiary for the current year.

Answer 1

answer:-calculated the answer amount and charter of income distrubted to each trust

give =Rental income-10400

Divident for equity stock -15800

exampt intrest income 23400

capital gain for stock 43100

operating exp-33443

truste fee-12000

principal account fee-all capital gain and 50%of capital recipt

depriciation reserve $9650

Calculated the Distrubted income

PARTICULAR	AMOUNT IN $
RENTEL INCOME	10400
DIVIDENT FOR EQUITY STOCK	15800
EXAMPT INTREST INCOME	23400
CAPITAL GAIN	43100
OPERATING EXP	33443
TRUSTED FEE	12000
DEPRICUTION RESERVE	9650
NET TOTAL INCOME	147793

LESS :-ALL CAPITAL GAIN	43100
LESS:-50% OF TRUSTY FEE	6000
LESS:-DEPRICIATION	9650
NET TOTAL INCOME DISTRUBTED	89043
TOTAL NO OF PERSON 3 PERSON	3
SHARE PER PERSON	29681