Leonard established a trust for the benefit of his son. The principal amount of the trust is $400,000. The trust is pr to earn approximately 5% per year. In the current year, the trust earned $20,000. Expenses of $4,000 were incurre 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 pr to earn approximately 5% per year. In the current year, the trust earned $20,000. Expenses of $4,000 were incurre 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