The Trustee of the Miguel Trust Can Distribute Any Amount $\$ 40,000$

question 15

Essay

The trustee of the Miguel Trust can distribute any amount of accounting income and corpus to the trust's income beneficiaries, Paula and George. This year, the trust incurred the following: Tax able interest income $\$ 40,000$ $\begin{array}{lc}\text { Tax-exempt interest income } & 20,000 \\\text { Long-term capital gains-allocable to corpus } & 10,000 \\\text { Fiduciary's fees-allocable to corpus } & 6,000\end{array}$ The trustee distributed $40,000 to Paula and $40,000 to George.
a. What is Miguel's trust accounting income?
b. What is Miguel's DNI?
c. What is Miguel's taxable income?
d. How much gross income is recognized by each of the beneficiaries?

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Definitions:

Subliminal Persuasion

A method of influencing people's attitudes or behaviors on a subconscious level, often through indirect or hidden stimuli.

Subliminal Advertising

A marketing technique that aims to influence consumers' purchasing decisions by exposing them to messages or images below their threshold of conscious perception.

Conscious Awareness

The state of being fully alert and aware of one's environment, thoughts, and feelings, allowing for intentional thought and action.

Differential Threshold

The minimum difference in stimulation required to detect a change or difference between two stimuli.