Little Trust, Whose Trust Instrument Is Silent with Respect to Depreciation

question 33

Essay

Little Trust, whose trust instrument is silent with respect to depreciation, collects rental income of $20,000 and pays property taxes of $1,000. Depreciation expense is $5,000.
Little Trust is in a state where all depreciation is charged to principal. What is the trust's net accounting income?

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Definitions:

Objective Self-Awareness

The ability to observe oneself from an external viewpoint, leading to a greater understanding of one’s actions and their impact.

Sense of Self

The individual's awareness of their own identity and personal characteristics, including beliefs, values, and physical self.

Externalizing Problems

Problem behavior that involves engaging in inappropriate conduct, especially aggressive acts.

Internalizing Problems

Problem behavior that involves negative feelings about self and other symptoms of depression.