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Insurance Expense - Income Cash-Income An inter vivos trust was created by Isaac Posney. Isaac owned a large department store in Juggins, Utah. Adjacent to the store, Isaac also owned a tract of land that was used as extra parking lot when the store was having a sale or during the Christmas season. Isaac expected the land to appreciate in value and eventually be sold for an office complex or additional stores. Isaac placed the land into a charitable lead trust, which would hold the land for ten years until Isaac's son would turn 21. At that time, title would be transferred to the son. The store will pay rent to use the land during the interim. The income generated each year from this usage will be given to a local church. The land was currently valued at $416,000. Property Taxes Expense -Income Cash-Income During the first year of this arrangement, the trustee recorded the following cash transactions: Cash inflow: Land Improvements Rental income $78,000 Cash-Income Cash outflows: Insurance $ 5,200 Due from Trust - Principal Property taxes 7,800 Due to Trust -Income Paving (considered an extraordinary repair) 5,600 Maintenance 10,400 Maintenance Expense - Income Distribution to beneficiary 39,000 Cash-Income Equity in Income: Beneficiary Instructions Prepare all required journal entries on the Trust Fund table for this trust fund including the entry to create the trust. Cash-Income Land Trust - Principal Cash-Income Trust -Income

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