Tax-exempt interest income problem


In its first tax year, the Wittmann Estate generated $50,000 of taxable interest income and $20,000 of tax-exempt interest income. It paid fiduciary fees of $7,000. The estate is subject to a 45% marginal estate tax rate and a 40% marginal income tax rate. How should the executor assign the deductions for the payment of the fees?

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Accounting Basics: Tax-exempt interest income problem
Reference No:- TGS052537

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