The Williams Trust was established six years ago.The trust document allows the trustee to distribute income in its discretion to beneficiaries Carol and Karen for the next 15 years.The trust will then be terminated and the trust assets will be divided equally between Carol and Karen.Capital gains are part of principal.
The current year income and expenses of the trust are reported below. Distribution of net accounting income to: Compute (a)distributable net income (DNI),(b)distribution deduction,(c)trust taxable income,and (d)Carol's and Karen's reportable income and its classification.Charge all of the deductible expenses against the rental income.

Question

The Williams Trust was established six years ago.The trust document allows the trustee to distribute income in its discretion to beneficiaries Carol and Karen for the next 15 years.The trust will then be terminated and the trust assets will be divided equally between Carol and Karen.Capital gains are part of principal.
The current year income and expenses of the trust are reported below.  Distribution of net accounting income to:  Compute (a)distributable net income (DNI),(b)distribution deduction,(c)trust taxable income,and (d)Carol's and Karen's reportable income and its classification.Charge all of the deductible expenses against the rental income.

Quizplus · Accepted Answer

The Answer of The Williams Trust was established six years ago.The trust document allows the trustee to distribute income in its discretion to beneficiaries Carol and Karen for the next 15 years.The trust will then be terminated and the trust assets will be divided equally between Carol and Karen.Capital gains are part of principal.
The current year income and expenses of the trust are reported below.  Distribution of net accounting income to:  Compute (a)distributable net income (DNI),(b)distribution deduction,(c)trust taxable income,and (d)Carol's and Karen's reportable income and its classification.Charge all of the deductible expenses against the rental income.

The Williams Trust Was Established Six Years Ago