Following are selected transactions in chronological order of Bayombong Company and its trustee in connection with a sinking fund. a. Cash contribution to the sinking fund, P1,000,000. b. Acquisition of securities at par by the trustee, P700,000. c. The trustee receives interest on the securities, P60,000. d. The trustee pays expenses of P30,000. e. The trustee sells the securities for P800,000 plus accrued interest of P10,000. f. The trustee pays bonds payable of P1,000,000 and interest of P100,000. g. The trustee remits the remaining cash to Bayombong Company. How much was remitted by the trustee to Bayombong Company?

Following are selected transactions in chronological order of Bayombong Company and its trustee in connection with a sinking fund. a. Cash contribution to the sinking fund, P1,000,000. b. Acquisition of securities at par by the trustee, P700,000. c. The trustee receives interest on the securities, P60,000. d. The trustee pays expenses of P30,000. e. The trustee sells the securities for P800,000 plus accrued interest of P10,000. f. The trustee pays bonds payable of P1,000,000 and interest of P100,000. g. The trustee remits the remaining cash to Bayombong Company. How much was remitted by the trustee to Bayombong Company?

SWFT Comprehensive Volume 2019

42nd Edition

ISBN:9780357233306

Author:Maloney

Publisher:Maloney

Chapter28: Income Taxati On Of Trusts And Estates

Section: Chapter Questions

Problem 19P

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