A Trust Reports the Following Results The Trust Must Distribute All of Its Income Annually

question 27

Essay

A trust reports the following results:
$\begin{array}{lrr} & \text { Income } & \text { Principal } \\\text { Taxable bond interest } & \$ 20,000 & \\\text { Rental income } & 10,000 & \\\text { Gain on sale of investment land } & & 10,000 \\\text { Property taxes } & 2,000 & \\\text { Tristep fees } & & 500\end{array}$
The trust must distribute all of its income annually. Calculate taxable income after the distribution deduction.

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Definitions:

Cause Marketing

A marketing strategy where businesses align with social issues or causes to generate societal impact and also promote their brand.

Charitable Contribution

Donations of money, goods, or services to nonprofit organizations or charities to support their causes and obtain potential tax benefits.

Tax Deduction

An allowable expense that can be deducted from taxable income, thus reducing the overall tax liability.

Fiscal Year

A one-year period used for financial reporting and budgeting that does not necessarily align with the calendar year; the start and end dates are chosen by the company or government entity.