Estate Finance Family Tax Plan Question Assume for the purposes of this question that the UPAIA...

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Accounting

Estate Finance Family Tax Plan Question
Assume for the purposes of this question that the UPAIA dictatesthe calculation of fiduciary accounting income.
1. In 2001, Larry creates a trust with Tenleytown Trust Companyas trustee. The trustee must distribute income to Susie, Jeff andLeon (the trust does not provide for distributions of principal).In 2002, the trust has $50,000 of interest from corporate bonds,$50,000 of interest from tax-exempt municipal bonds and $50,000 ofdividends. The trust also sells Asset A that has a basis of$100,000 for $500,000. In 2012, trust pays trustee fees toTenleytown Trust Company of $50,000 and attorney's fees of $50,000to the law offices of Hiram Katz. What is the trust's fiduciaryaccounting income? Analyze how much of each receipt anddisbursement should be allocated to income or principal.

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Trust accounting requires a trustee to prepare an annual report of the cash receipts and disbursements made throughout the year In preparing the trust or fiduciary accounting the trustee is guided by the See Answer

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