The Hopetown Family Trust is a discretionary trust with three individual resident beneficiaries. The following is a summary of the financial information necessary to calculate the net income of the trust for the current year ended 30 June: Sale of a rental property on 14 May of the current year for $560,000 where the property was purchased on 5 June 2000 for $410,000. Cash dividends of $21,000 received from Australian resident companies. All dividends were fully franked (assume corporate tax rate of 30%). Interest income of $12,000 received during the year. What is the s 95(1) net income of the trust for the current year ended 30 June

Dividends $20,000 Long-term capital gain 15,000 Trustee’s fees 1,500 Distribution to beneficiary 20,000 A simple trust has the following receipts and expenditures for the year. The trust instrument classifies gains, losses, and trustee’s fees part of the principal. What is the trust’s taxable income?

On January 1, 2018, A, B and C formed ABC Partnership with original capital contribution of P300,000, P500,000 and P200,000. A is appointed as managing partner. During 2018, A, B and C made additional investments of P500,000, P200,000 and P300,000, respectively. At the end of 2018, A, B and C made drawings of P200,000, P100,000 and P400,000, respectively. At the end of 2018, the capital balance of C is reported at P320,000.   The profit or loss agreement of the partners is as follows: • 10% interest on original capital contribution of the partners. • Quarterly salary of P40,000 and P10,000 for A and B, respectively. • Bonus to A equivalent to 20% of Net Income after interest and salary to all partners • Remainder is to be distributed equally among the partners.   What is the partnership profit for the year ended December 31, 2018?    P900,000 P1,020,000 P1,050,000 P960,000

Beau Dawson and Willow McDonald formed a partnership, investing $67,500 and $202,500, respectively. Determine their participation in the year's net income of $285,000 under each of the following independent assumptions: c. Interest at the rate of 6% allowed on original investments and the remainder divided in the ratio of 2:3.

During 2016, an estate generated income of $57,500: Rental income $21,500 18,500 7,500ב Interest income Dividend income The interest income is conveyed immediately to the beneficiary stated in the decedent's will. The dividends are given to the decedent's church. What is the taxable income of the estate? Taxable income

The partners agreed to dispose of an old pick-up truck with a net book value of $350,000for $400,000. The pick-up had a tax written down value of $300,000. Calculate the Capital Allowance using the rate in Jamaica

Use the following information to complete the chart below, indicating the Calvet Trust's entity accounting income for each of the alternatives. Interest income, taxable $300,000 Interest income, tax-exempt 30,000 Interest income, tax-exempt but AMT preference item 20,000 Long-term capital gain 40,000 Trustee fee 10,000   Trust Agreement Provisions Trust AccountingIncome Fees and capital gains allocable to corpus 350,000 Capital gains allocable to corpus, one-half of fees allocable to income   Capital gains allocable to income, silent concerning allocation of fees   Fees and exempt income allocable to corpus, silent concerning allocationof capital gain/loss

Prepare your answers using excel or clearly written computations. Show your work for maximum points. 1. Marie and Ramesh form Roundtree Corporation with the transfer of the following. Marie performs personal services for the corporation with a fair market value of $80,000 in exchange for 400 shares of stock. Ramesh contributes an installment note receivable (basis $25,000; fair market value $30,000), land (basis $50,000; fair market value $170,000), and inventory (basis $100,000; fair market value $120,000) in exchange for 1,600 shares. Determine Marie and Ramesh’s current income, gain, or loss; calculate the basis that each takes in the Roundtree stock.

Case Study for Harry and Belinda Johnson. Given: Harry Johnson - Annual Income $73,000.00    contributed to a traditional IRA $3,000.00     Belinda Johnson - Annual Income $94,000.00   contribued to 401(k) $3,000.00     Earned Interst  - checking & savings $400.00 Earned Interst -Trust (taxed same as check & sav) $3,000.00 1. What is the total value of their exemptions? 2. How much is the standard deduction for the Johnsons?

What is an individual’s adjusted net worth if the personal financial statement lists total assets of $2,000,000 and total liabilities of $500,000? Additional assets include a 5% ownership in a real estate venture valued at $100,000; marketable securities of $40,000; cash surrender value of life insurance of $20,000 that is pledged against a policy loan; and a residence purchased one year ago and valued at $80,000 higher than the purchase price.   $1,300,000   $1,500,000   $1,380,000   $1,400,000