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A Trust Document Does Not Define Income or Principal Net business profits $20,000Net rental income 5,000\begin{array} { l } \text {Net business profits }&\$20,000\\ \text {Net rental income }&5,000\\\end{array}

Question 35

Essay

A trust document does not define income or principal.The state in which the trust is operated has adopted the Uniform Act,including allocation of depreciation to income.The trust reports the following:
Net business profits $20,000Net rental income 5,000\begin{array} { l } \text {Net business profits }&\$20,000\\ \text {Net rental income }&5,000\\\end{array}
Proceeds from stock sale
 (including $10,000 gain) 50,000Trustee fee (charged to income) 2,000Depreciation 3,000\begin{array} { l }\text { (including } \$ 10,000 \text { gain) }&50,000\\ \text {Trustee fee (charged to income) }&2,000\\ \text {Depreciation }&3,000\\\end{array}
What is the amount of the trust's net accounting income?

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$20,000 + ...

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