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Question - A simple trust has ordinary gross income of $25,000 and $12,000 of capital gains, which are allocable to corpus. Its only deductible item is a trustee's commission of $4,000, allocable to corpus under the trust instrument.
a. How much is the trust's accounting income?
b. How much is the DNI that will be taxable to the beneficiary?
c. How much will the trust pay tax on?
Equivalent units are calculated by
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