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

question 100

Short Answer

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: $\begin{array}{lr}\text { Dividends } & \$ 2,500 \\\text { Capital gain } & 1,500 \\\text { Tax return preparation fee } & 200 \\\text { Trustee fees, all charged to income } & 100\end{array}$ What is the amount of trust's net accounting income?

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Definitions:

Territorial Claims

Declarations by a country asserting sovereignty over an area, often based on historical or legal grounds.

Executive Agreements

Agreements between the head of government of one state and the government of another that are less formal than treaties and do not require legislative approval.

Senate Approval

A requirement for certain proceedings and decisions, including the ratification of treaties and the confirmation of Cabinet members and other federal officials, needing a majority vote in the Senate.

Foreign Affairs

Activities, policies, and relations between governments or institutions of different countries, including diplomacy, trade agreements, and international partnerships.