If the trust agreement allocates fees capital gains and


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 assesses a fee of $15,000 for the year.

a. If the trust agreement allocates fees, capital gains and losses, as well as casualty gains and losses to corpus, trust accounting income is $

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

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Financial Management: If the trust agreement allocates fees capital gains and
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