The trustee of the Miguel Trust can distribute any amount of accounting income and corpus to the trust's income beneficiaries, Paula and George. This year, the trust incurred the following: Tax able interest income$\$ 40,000$ $\begin{array}{lc}
\text { Tax-exempt interest income } & 20,000 \
\text { Long-term capital gains-allocable to corpus } & 10,000 \
\text { Fiduciary's fees-allocable to corpus } & 6,000
\end{array}$ The trustee distributed $40,000 to Paula and $40,000 to George.
a. What is Miguel's trust accounting income?
b. What is Miguel's DNI?
c. What is Miguel's taxable income?
d. How much gross income is recognized by each of the beneficiaries?

Question

The trustee of the Miguel Trust can distribute any amount of accounting income and corpus to the trust's income beneficiaries, Paula and George. This year, the trust incurred the following: Tax able interest income$\$ 40,000$ $\begin{array}{lc}
\text { Tax-exempt interest income } & 20,000 \
\text { Long-term capital gains-allocable to corpus } & 10,000 \
\text { Fiduciary's fees-allocable to corpus } & 6,000
\end{array}$ The trustee distributed $40,000 to Paula and $40,000 to George. 
a. What is Miguel's trust accounting income?
b. What is Miguel's DNI?
c. What is Miguel's taxable income?
d. How much gross income is recognized by each of the beneficiaries?

Quizplus · Accepted Answer

The Answer of The trustee of the Miguel Trust can distribute any amount of accounting income and corpus to the trust's income beneficiaries, Paula and George. This year, the trust incurred the following: Tax able interest income$\$ 40,000$ $\begin{array}{lc}
\text { Tax-exempt interest income } & 20,000 \
\text { Long-term capital gains-allocable to corpus } & 10,000 \
\text { Fiduciary's fees-allocable to corpus } & 6,000
\end{array}$ The trustee distributed $40,000 to Paula and $40,000 to George. 
a. What is Miguel's trust accounting income?
b. What is Miguel's DNI?
c. What is Miguel's taxable income?
d. How much gross income is recognized by each of the beneficiaries?

The Trustee of the Miguel Trust Can Distribute Any Amount $40,000\$ 40,000$40,000

The Trustee of the Miguel Trust Can Distribute Any Amount $\$ 40,000$