Two different trusts have the same grantor and beneficiary. The income tax due of the first trust is P35,000 before consolidation. Both trusts have already paid the income tax due on their separate taxable income. Consolidation of the two trusts resulted to a total income tax due of P184,000. How much is the income tax still due for the second trust?
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Two different trusts have the same grantor and beneficiary. The income tax due
of the first trust is P35,000 before consolidation. Both trusts have already paid
the income tax due on their separate taxable income. Consolidation of the two
trusts resulted to a total income tax due of P184,000. How much is the income
tax still due for the second trust?
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- A real property was transferred to a revocable trust with Carding as the beneficiary. The property earned a total of 900,000 gross rentals during the taxable period. The expenses attributable to the maintenance of the same property amounted to P200,000. During the period, 250,000 of the total rentals was distributed to the beneficiary. How much is the allowable special deduction for income distribution to the beneficiary? a. Zero b. 200,000 c. 250,000 d. 300,000A complex trust has taxable income of $29,900 in the current year. The $29,900 includes $5,000 of rental income and $25,000 of taxable interest income, reduced by the $100 personal exemption. The trust makes no distributions during the year. What is the trust’s total tax liability?The Abelinda Estate distributed some land, basis of $15,500 and fair market value of $18,000, to beneficiary Bartholomaus. The estate is subject to a 28% marginal income tax rate, and Bartholomaus is subject to a 32% marginal rate. What are the tax savings if the executor of the estate elects that the entity recognize the related realized gain? Please note that I came up with $125 & it is incorrect.
- The Parent consolidated group reports the following results for the 2021 tax year. Entity Parent Income or Loss $78,600 Sub1 (7,860) Sub2 Sub3 31,440 15,720 Do not round any division in your computations. If required, round your answers to nearest whole dollar. If an amount is zero, enter "0". a. What is the group's consolidated taxable income and consolidated tax liability? If the relative taxable income method, the consolidated taxable income is $ the total consolidated tax liability is $ b. If the Parent group has consented to the relative taxable income method, how will the consolidated tax liability be allocated among the Parent and Subsidiaries 1, 2, and 3? Entity Income or Loss Parent $ Sub1 $ Sub2 $ Sub3 $ HA andThe Parent consolidated group reports the following results for the 2021 tax year. Entity Income or Loss Parent $13,600 Sub1 (1,360) Sub2 5,440 Sub3 2,720 Do not round any division in your computations. If required, round your answers to nearest whole dollar. If an amount is zero, enter "0". a. What is the group's consolidated taxable income and consolidated tax liability? If the relative taxable income method, the consolidated taxable income is $fill in the blank 1 and the total consolidated tax liability is $fill in the blank 2 . b. If the Parent group has consented to the relative taxable income method, how will the consolidated tax liability be allocated among the Parent and Subsidiaries 1, 2, and 3? Entity Income or Loss Parent $fill in the blank 3 Sub1 $fill in the blank 4 Sub2 $fill in the blank 5 Sub3 $fill in the blank 6Adams, Smith, Jones and the XYZ Corp. transfer appreciated property of equal value to Newco. Adams, Smith and XYZ Corp. receive 25 shares each of common stock worth $25,000. Jones received a debt instrument maturing in 15 years with a face value of $25,000. Assume each of the participants has a basis in the assets transferred equal to $5,000. What are the tax consequences to the transferors and Newco?
- Tristan transfers property with a tax basis of $1,160 and a falr market value of $1,720 to a corporation In exchange for stock with a falr market value of $1,160 and $390 In cash in a transaction that qualifies for deferral under section 351. The corporation assumed a liability of $170 on the property transferred. What Is the corporation's tax basis In the property recelved In the exchange? Multiple Cholce $1,720 $1,550 $1,330 $1,160The XYZ Trust has two income beneficiaries. The trust can distribute any amount of accounting income to the beneficiaries and corpus. Taxable interest income 40,000 Tax-exempt income interest income 20,000 Long-term capital gains-allocable to corpus 80,000 Legal and accounting fees-allocable to corpus 9,000 Money distributed to Beneficiary A 13,000 Money distributed to Beneficiary B 26,000 Determine the following: Trust Accounting Income________________________ Taxable Income________________________________ Distributable Net Income (DNI)____________________The allwardt trust is a simple trust that correctly uses the calander year for tax purposes. It's income beneficiaries (Lucy and Ethel) are entitled to the trusts annual accounting income it shares of one-half each. For the current tax year, allwardt reports the following. Ordinary income $585,000. Long-term capital gains, allocated to corpus $175,500. Legal and accounting fees, allocated to corpus $29,250. What is the trusts DNI? What is the trusts taxable income? How much gross income is reported by each of the beneficiaries?
- The XYZ Trust has two income beneficiaries. The trust can distribute any amount of accounting income to the beneficiaries and corpus. Taxable interest income 40,000 Tax-exempt income interest income 20,000 Long-term capital gains-allocable to corpus 80,000 Legal and accounting fees-allocable to corpus 9,000 Money distributed to Beneficiary A 13,000 Money distributed to Beneficiary B 26,000 Determine the following: Distribution Deduction___________________________ Trust Taxable Income____________________________ Beneficiary A Taxable Income______________________ Beneficiary B Taxable Income______________________Answer whether each statement is True or False 1.Amounts withdrawn from deposit accounts of a decedent subjected to the 6% final withholding tax shall be included in the gross estate for estate tax purposes. 2. Transfer taxes provide income to the government. 3. It is possible that a transfer may be inter vivos in form but mortis causa in substance. 4. A power of appointment is the right to designate the person or persons who shall succeed to the property of a prior decedent. 5. A special power of appointment authorizes the donee of the power to appoint only from among a designated class or group of persons other than himself. 6. The donee-decedent of a special power of appointment only holds the property in trust; hence, the property shall form part of the donee-decedent's gross estate. 7. The designation of beneficiary in a life insurance is irrevocable unless expressly stated as revocable. 8. An insolvent person is one whose liabilities exceed his assets. 9. Only the property…The Remington Trust is a simple trust. Charlotte is its sole beneficiary. In the current year, the trust earns $56,000 in taxable interest and $13,000 in nontaxable interest. In addition, the trust recognizes an $8,000 long-term capital gain and $6,000 casualty loss. The trustee charges a fee of $15,000 for the year. b. However, if the trust agreement allocates one-third of the fiduciary's fees as well as all of the capital gains and losses to income, the trust accounting income is $