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:

Frontal

Referring to the forehead or the front part of something, particularly the frontal lobe of the brain which is involved in decision making, problem solving, and controlling behavior.

Maxillary

Pertaining to the maxilla, the upper jawbone in humans and some animals, which holds the upper teeth and plays a key role in the formation of the roof of the mouth and the floor of the nose.

Calcaneus

The large bone forming the heel of the foot, important for bearing weight and walking.

Fibula

A slender bone positioned on the outer aspect of the tibia in the lower leg, crucial for ankle stability and aiding the muscles of the lower leg.