The Hallway Living Trust (EIN 64-6499004) is a trust established for the bene t

Question

The Hallway Living Trust (EIN 64-6499004) is a trust established for the bene t of two bene ciaries: Geraldine Hallway

7806 East Washington Lane 9510 Samson Road Your City, YS XXXXX

SSN: 747-64-4001

Constance Hallway

9510 Samson Road Your City, YS XXXXX Your City, YS

SSN: 747-64-4002

According to the trust agreement, the income should be distributed annually to the bene ciaries.

In addition to the income distributions, the bene ciaries are each entitled to a $10,000 distribution. The trust had the following income and (expenses) during the year: Interest income: $ 6,000

Municipal interest income: $ 2,500

Ordinary and quali ed dividends: $ 6,000

Gain on capital assets: $18,000

Fiduciary fees: ($ 2,500)

Tax preparation fees: ($ 500)

1) What amount of qualified dividends is allocable to the trust for 2016?

A) $600

B) $1,284

C) $4,716

D) $6,000 '

2) Based on the distribution information provided in the case study, what type of trust is the Hallway Trust for 2016?

A) Complex.

B) Simple.

C) Grantor.

D) Charitable.

Explanation / Answer

answer: 1 D) $6,000 (mention in the details provided)

answer: 2 A) Complex. (as it involves several types of distribution of income and expenses)

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.