A Trust Document Does Not Define Income and Principal What Is the Amount of Trust's Net Accounting Income

question 49

Essay

A trust document does not define income and principal.The state in which the trust is operated has adopted the Uniform Act.The trust reports the following:
$\begin{array}{ll}\text { Dividenids }&\$2,500\\\text { Capital gain } & 1,500 \\\text { Taxreturn preparation fee } & 200 \\\text { Trustee fees, all charged to income } & 100\end{array}$ What is the amount of trust's net accounting income?

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Definitions:

Service Industries

Sectors of the economy that provide intangible goods or services to consumers, such as healthcare, education, and leisure activities.

Basic Scientific Research

Fundamental investigations aimed at gaining a deeper understanding of concepts, processes, and phenomena without immediate practical applications.

Research and Development

Activities undertaken by companies or governments in innovation and improvement of products and processes, involving both basic and applied research.

Direct Efforts

Direct Efforts pertain to actions taken explicitly and intentionally to achieve a particular goal, often in contrast to indirect efforts that might have secondary effects.