Exercise 20-12 (Algorithmic) (LO. 1) The entity reports the following transactions for the 2022 tax year. The trustee accumulates all accounting income for the year. Operating income from a business $595,000 35,700 Dividend income, all from U.S. corporations (20% tax rate) Interest income, City of San Antonio bonds 4,760,000 Trustee fees, deductible portion (17,850) Net rental losses, passive activity (119,000) Click here to access tax table for this problem. Carryout the tax computations to two decimal places and round the final tax liability to the nearest dollar. Compute the Federal income tax liability for the Valerio Trust by providing the following amounts: The amount of the trustee's gross income taxed at 20% for the Valerio Trust is $ The Trustee taxable income taxed at ordinary rates for the Valerio Trust is $ 35,700 ✓. 577,050 The Federal income tax liability for the Valerio Trust is $ 215,672 x.
Exercise 20-12 (Algorithmic) (LO. 1) The entity reports the following transactions for the 2022 tax year. The trustee accumulates all accounting income for the year. Operating income from a business $595,000 35,700 Dividend income, all from U.S. corporations (20% tax rate) Interest income, City of San Antonio bonds 4,760,000 Trustee fees, deductible portion (17,850) Net rental losses, passive activity (119,000) Click here to access tax table for this problem. Carryout the tax computations to two decimal places and round the final tax liability to the nearest dollar. Compute the Federal income tax liability for the Valerio Trust by providing the following amounts: The amount of the trustee's gross income taxed at 20% for the Valerio Trust is $ The Trustee taxable income taxed at ordinary rates for the Valerio Trust is $ 35,700 ✓. 577,050 The Federal income tax liability for the Valerio Trust is $ 215,672 x.
Chapter20: Income Taxation Of Trusts And Estates
Section: Chapter Questions
Problem 14CE
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Transcribed Image Text:Exercise 20-12 (Algorithmic) (LO. 1)
The entity reports the following transactions for the 2022 tax year. The trustee accumulates all accounting income for the
year.
Operating income from a business
$595,000
35,700
Dividend income, all from U.S. corporations
(20% tax rate)
Interest income, City of San Antonio bonds
4,760,000
Trustee fees, deductible portion
(17,850)
Net rental losses, passive activity
(119,000)
Click here to access tax table for this problem.
Carryout the tax computations to two decimal places and round the final tax liability to the nearest dollar.
Compute the Federal income tax liability for the Valerio Trust by providing the following amounts:
The amount of the trustee's gross income taxed at 20% for the Valerio Trust is $
The Trustee taxable income taxed at ordinary rates for the Valerio Trust is $
35,700
✓.
577,050
The Federal income tax liability for the Valerio Trust is $
215,672
x.
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