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:

Electrode Catheters

Flexible, conductive tubes used in medical procedures to diagnose or treat cardiovascular abnormalities by delivering electrical currents to heart tissues.

Artificial Pacemaker

An electronic device implanted in the body to regulate the heartbeat by generating electrical impulses.

Vena Cava

One of two large veins that empty into the right atrium of the heart.

Right Atrium

The right upper chamber of the heart that receives deoxygenated blood from the body through the vena cava.