Donald Is the Trustee of a Trust Set Up by Simpson,with

question 55

Essay

Donald is the trustee of a trust set up by Simpson,with Adams as beneficiary.The trust property consists almost entirely of income-producing real property-office buildings,apartment complexes,etc.By putting a "P" or an "I" in the appropriate space,indicate whether the following fund transactions should be allocated to principal (P)or to interest (I).
___ 1.Rental income received from tenants on trust property.
___ 2.Capital gains realized from the sale of trust real estate.
___ 3.Property tax payments on trust property.
___ 4.Building management fees for trust property.
___ 5.Costs of ordinary repairs to trust property.
___ 6.Property insurance premiums on trust property.
___ 7.The cost of long-term permanent improvements to trust property

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Definitions:

Production

The process of creating goods and services using labor, machinery, and resources to meet consumer demand.

Compressed Workweek

A work schedule that allows employees to work longer hours on fewer days of the week.

Telecommuter

Home-based employee.

Job Sharing Program

A work arrangement where two or more individuals share the responsibilities and duties of a single full-time job, dividing the hours and benefits among themselves.