Question 1

The Circle Trust reports some exempt interest income for the year. How does this investment income affect Circle's deduction of its fiduciary fees? Charitable contributions?

Accepted Answer

A proportionate amount of the deduction ...

Question 2

For each of the following independent statements, choose the best answer.
-​The entity typically can choose any fiscal tax year.​

Accepted Answer

A)  Tax attribute of complex trusts only
B)  Tax attribute of estates only
C)  Tax attribute of estates and complex trusts
D)  Tax attribute of neither estates nor complex trustsE) All of the above
F) None of the above

Question 3

For each of the following items, insert the best term or phrase. An answer choice may be used more than once, but only one choice is the best for each descriptive phrase.
-The person who transfers assets to a trust.

Accepted Answer

A)  Complex
B)  Decedent
C)  Executor
D)  Grantor
E)  LivingF) ReversionaryG) SimpleH) SprinklingI) TrusteeJ) A) and H)
K) A) and E)

Question 4

Entity accounting income is controlled by the terms of the ____________________ for an estate or the ____________________ for a trust.

Accepted Answer

will, trus...

Question 5

The Federal income taxation of a trust or estate has been described as a "modified pass-through" system. Compare fiduciary tax rules to those that apply to LLCs and to individuals.

Accepted Answer

Fiduciary entities are taxed in a unique...

Question 6

The Doyle Trust reports distributable net income for the year of $100,000 and no income from tax-exempt sources. Under the terms of the trust instrument, the trustee must distribute $20,000 to Roger and $20,000 to Sally. After paying these amounts, the trustee is empowered to make additional distributions at its discretion. Exercising this authority, the trustee distributes an additional $25,000 to Roger and $50,000 to Sally. How much gross income from the trust must Sally recognize?

Accepted Answer

A)  $70,000
B)  $60,000
C)  $40,000
D)  $20,000E) C) and D)
F) All of the above

Exam 20: Income Taxation of Trusts and Estates

The Circle Trust reports some exempt interest income for the year. How does this investment income affect Circle's deduction of its fiduciary fees? Charitable contributions?

Correct Answer
verified
A proportionate amount of the deduction ...
View Answer

For each of the following items, insert the best term or phrase. An answer choice may be used more than once, but only one choice is the best for each descriptive phrase. -The person who transfers assets to a trust.

Correct Answer
verified

Entity accounting income is controlled by the terms of the for an estate or the for a trust.

Correct Answer
verified
will, trus...
View Answer

For each of the following independent statements, choose the best answer. -The entity typically can choose any fiscal tax year.

Correct Answer
verified

The Federal income taxation of a trust or estate has been described as a "modified pass-through" system. Compare fiduciary tax rules to those that apply to LLCs and to individuals.

Correct Answer
verified
Fiduciary entities are taxed in a unique...
View Answer

Correct Answer
verified

Exam 20: Income Taxation of Trusts and Estates

The Circle Trust reports some exempt interest income for the year. How does this investment income affect Circle's deduction of its fiduciary fees? Charitable contributions?

Correct AnswerverifiedA proportionate amount of the deduction ...View AnswerShow Answer

For each of the following items, insert the best term or phrase. An answer choice may be used more than once, but only one choice is the best for each descriptive phrase. -The person who transfers assets to a trust.

Correct AnswerverifiedShow Answer

Entity accounting income is controlled by the terms of the ____________________ for an estate or the ____________________ for a trust.

Correct Answerverifiedwill, trus...View AnswerShow Answer

For each of the following independent statements, choose the best answer. -​The entity typically can choose any fiscal tax year.​

Correct AnswerverifiedShow Answer

The Federal income taxation of a trust or estate has been described as a "modified pass-through" system. Compare fiduciary tax rules to those that apply to LLCs and to individuals.

Correct AnswerverifiedFiduciary entities are taxed in a unique...View AnswerShow Answer

Correct AnswerverifiedShow Answer

Correct Answer
verified
A proportionate amount of the deduction ...
View Answer

Correct Answer
verified

Entity accounting income is controlled by the terms of the for an estate or the for a trust.

Correct Answer
verified
will, trus...
View Answer

For each of the following independent statements, choose the best answer. -The entity typically can choose any fiscal tax year.

Correct Answer
verified

Correct Answer
verified
Fiduciary entities are taxed in a unique...
View Answer

Correct Answer
verified