Which of the Following Is Usually Accounted for as an Adjustment

question 29

Multiple Choice

Which of the following is usually accounted for as an adjustment to a trust's principal?

• A) repairs expense.
• B) rent expense.
• C) investment costs and commissions.
• D) insurance expense.
• E) property taxes.

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Definitions:

Personal-Use Asset

An asset primarily used for the personal enjoyment or needs of an individual or family, as opposed to business or investment use.

FMV

Fair Market Value (FMV) is the price that property would sell for on the open market, between a willing buyer and seller, with neither being under any pressure to buy or sell.

Date of Contribution

The specific day on which an asset or financial investment was contributed or transferred to a particular entity or project.

Separately Stated Item

Items on a partnership's or S corporation's income tax return that are listed separately to ensure proper treatment at the individual level.