The Kilp Sisters Trust is required to distribute $60,000 annually equally to its two income beneficiaries, Clare and Renee. If trust income is not sufficient to pay these amounts, the trustee can invade corpus to the extent necessary. During the current year, the trust generates only taxable interest income and records DNI of $160,000; the trustee distributes $30,000 to Clare and $150,000 to Renee. a. How much of the $150,000 distributed to Renee is included in her gross income? $.
b. How much of the $30,000 distributed to Clare is included in her gross income? $ is included in her gross income.
c. The distributions which are composed of trust accounting income that is required to be distributed currently come under .
Answers
Answer:
a)
Results for Renee are as follows:
After the first tier distributions ($60000/2 = $30000 to each income beneficiaries) are accounted for, $100000 DNI remains to be assigned to the beneficiaries on the second tier ($160000 DNI - $60000 DNI used for first tier distribution).
Amount received DNI received = Gross income,
portfolio income
First tier $30,000.00 $30,000.00
Second tier $1,20,000.00 $ 1,00,000.00
Total $1,50,000.00 $ 1,30,000.00
b)
Results for Clare are as follows:
Amount received DNI received = Gross income,
portfolio income
First tier $30,000.00 $ 30,000.00
Second tier $ - $ -
Total $30,000.00 $ 30,000.00
c)
The distributions which are composed of trust accounting income that is required to be distributed currently come under First Tier Distribution.
Related Questions
Selma operates a contractor's supply store. She maintains her books using the cash method. At the end of the year, her accountant computes her accrual basis income that is used on her tax return. For 2015, Selma had cash receipts of $1.4 million, which included $200,000 collected on accounts receivable from 2014 sales. It also included the proceeds of a $100,000 bank loan. At the end of 2015, she had $250,000 in accounts receivale from customers, all from 2015 sales.Required:a. Compute Selma's accrual basis gross receipts for 2015.b. Selma paid cash for all of the purchases. The total amount paid for merchandise in 2020 was $1,300,000. At the end of 2019, she had merchandise on hand with a cost of $150,000. At the end of 2020, the cost of merchandise on hand was $300,000. Compute Selma's gross income (profit) from merchandise sales for 2015.
Melinda invests $200,000 in a City of Heflin bond that pays 6 percent interest. Alternatively, Melinda could have invested the $200,000 in a bond recently issued by Surething Inc., that pays 8 percent interest and has risk and other nontax characteristics similar to the City of Heflin bond. Assume Melinda’s marginal tax rate is 25 percent. (Leave no cells blank - be sure to enter "0" wherever required.)Required:What is her after-tax rate of return for the City of Heflin bond?How much explicit tax does Melinda pay on the City of Heflin bond?How much implicit tax does she pay on the City of Heflin bond?How much explicit tax would she have paid on the Surething Inc. bond?What is her after-tax rate of return on the Surething Inc. bond?
Managerial accountants could prepare all of the following reports except a.a sales report targeting monthly sales and potential bonuses b.a performance report identifying amounts of scrap c.a control report comparing direct material usage over time d.an annual report for external regulators such as the SEC
Robert House believed that a leader cannot move back and forth among the four leadership styles: directive, supportive, achievement-oriented, and participative. a) True b) False
c. $19,263d. $14,085
Answers
Answer:
- $19,591.63
Explanation:
1. Calculate the price of the car in a year from now.
This is add the 4% on the current price:
- $20,000 × 1.04 = $20,800
2. Calculate the amount of money that must be put aside to have $20,800 in a year:
Use the formula of monthly compound interest, with 6% annual interest
- r = 6% / 12 = 0.06/12 = 0.05
- P(1 + 0.005)¹² = $20,800
- P = $20,800 / (1 + 0.005)¹² = $19,591.63
Deferred revenues $ 32,000
Total revenues $ 459,000
Purchase discounts $ 15,000
Sales allowances $ 35,000
Accounts receivable $ 205,000
What was the company's net revenues for the year?
Answers
Answer:
Net Revenue = $383000
Explanation:
Below is the calculation for net revenue:
Net revenue = Total revenue - Sales discount - sales allowances
Given Total revenue = 459000
Sales discount = 41000
Sales allowances = 35000
Net Revenue = 459000 - 41000 - 35000
Net revenue = 459000 - 76000
Net Revenue = $383000
The net revenue of the company for the year is $383000.
Answers
Answer:
z = 0.96, standard deviations to the right of the mean 170 cm
Explanation:
z=
x = 176 cm is 0.96, standard deviations to the right of the mean 170 cm
Answers
Answer:
Letter a is correct. Internal; external.
Explanation:
The current economic era translates into a globalized and competitive landscape that requires companies to be adaptable to the rapidly occurring changes in the world, which may be economic, consumer, trend, legislative and other changes.
Therefore it is a fact and need for the internal perspective to be valued more than the external one, as quality-focused management should consider organizational systems as responsible for ensuring the integrated technique that will directly influence the functioning of the organization. Therefore, it can be affirmed that management focused on ethical communication and action practices, in addition to the positive and continuous improvement-based organizational culture, will promote the integration of teams and the general motivation that, through internal quality, external quality is the result.
Answers
Answer:
So we can offer for the house $180119.95
Explanation:
Monthly income =$4000
Monthly mortgage payment allowed (P)= 25% of 4000= $1000
Interest rate per month (i)= 0.5%
Number of months in total (n)= 30*12= 360
Maximum loan affordable = P*(1-(1/(1+i)^n))/i
=1000*(1-(1/(1+0.5%)^360))/0.5%
=$166791.61
Closing cost is 4% of loan value = 166791.61*4% =$6671.66
Balance Amount left for down payment = 20000-6671.66
=$13328.34
It means we can pay $6671.66 for closing cost of Loan and $13328.34 for down payment.
Cost of house paid maximum = Down payment + Affordable loan
=13328.34+166791.61
=$180119.95
So we can offer for the house $180119.95
Answers
Answer: No it's not plausible.
Explanation:
Here is the complete question:
Suppose that your state raises its sales tax from 5 percent to 6 percent. The state revenue commissioner forecasts a 20 percent increase in sales tax revenue. Is this plausible? Explain.
From the question, we are told that the state increases its sales tax from 5 percent to 6 percent and the state revenue commissioner predicted that a 20 percent increase in the sales tax revenue due to the increase in sales tax.
This is not plausible, when the sales tax increases from from 5 percent to 6 percent, this will lead to an increase in the prices of the goods. According to the law of demand, the higher the price of goods and services, the lower will be the demand for the good. So, in this case, due to the increase in sales tax, it may prompt the consumers to reduce their spending.
Therefore, a 20 percent increase in the sales tax revenue is not plausible. Even if there will be an increase in the sales tax revenue, it won't be up to 20 percent.