Leonard established a trust for the benefit of his son.The principal amount of the trust is $400,000.The trust is projected to earn approximately 5% per year.In the current year,the trust earned $20,000.Expenses of $4,000 were incurred.Assume that $14,000 is distributed to Leonard's son.
a.How much income is taxed to the trust?
b.How much income is taxed to Leonard's son?

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The Answer of Leonard established a trust for the benefit of his son.The principal amount of the trust is $400,000.The trust is projected to earn approximately 5% per year.In the current year,the trust earned $20,000.Expenses of $4,000 were incurred.Assume that $14,000 is distributed to Leonard's son.
a.How much income is taxed to the trust?
b.How much income is taxed to Leonard's son?

Leonard Established a Trust for the Benefit of His Son