Compute trust accounting income

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Problem - The Biltmore Trust is a simple trust. Crawford is its sole beneficiary. In the current year, the trust earns $3,200 in taxable interest and $8,000 in tax-exempt interest. In addition, the trust recognizes a $2,500 long-term capital gain. The trustee assesses a fee of $1,800 for the year.

a. Compute trust accounting income, where the trust agreement allocates fees and capital gains to corpus.

b. Same as part (a), except that fees are allocated to income.

c. Construct a Microsoft Excel formula that will generate the correct answer to both parts (a) and (b).

Reference no: EM132650989

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