The Kapoor Trust Is Your Client Trust Agreement Provisions Trust Accounting Income
Fees and Capital Gains

The Kapoor Trust is your client. Complete the chart below, indicating Kapoor's trust accounting income for each of the alternatives.
$\begin{array}{llr} \text { Interest income, taxable } & \$ 60,000\\ \text { Interest income, tax-exempt } &30,000\\ \text { Interest income, tax-exempt but AMT preference} &10,000\\ \text {Long-term capital gain } &40,000\\ \text { Trustee fee} &5,000\\\end{array}$



Trust agreement provisions Trust accounting income
Fees and capital gains allocable to
corpus ______________________
Capital gains allocable to corpus, one-
half of fees allocable to income ______________________
Capital gains allocable to income, silent
concerning allocation of fees ______________________
Fees and exempt income allocable to corpus,
silent concerning allocation of capital gain/loss ______________________