Your client Pryce is one of the income beneficiaries of the Santiago Trust. Pryce says to you, “I want all of the exempt interest income from Santiago to be allocated to me, because I am the income beneficiary who is subject to the highest marginal Federal income tax rate.” How do you respond to Pryce’s request?
What will be an ideal response?
Special allocations of DNI are allowed only rarely under Subchapter J. A special allocation must be required in the trust instrument and supported by an economic effect that is independent of cash-flow and income tax consequences. This rule is similar to that used in partnership taxation under § 704(b)(2). Lacking such economic effects, all income beneficiaries share proportionately the character of the DNI.
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We use our own knowledge and information to decode a message during the ______ stage.
Fill in the blank(s) with the appropriate word(s).
Many firms disaggregate the initial amounts they received from shareholders for common shares into the _____ and the amounts received in excess of this value, called additional paid-in capital (APIC), share premium, or capital contributed in excess of par value
a. par value of the shares b. nominal value of the shares c. stated value of the shares d. Choices a, b, and c are correct. e. None of these answer choices is correct.
Use the following information for questions 1-5: Stan's Surf Shack purchased five surfboards for $200 each. Later it purchased two additional surfboards for $250 each. Stan's sold a total of six surfboards during the period for $350 cash each. The company uses the perpetual inventory system and has not yet accrued any income taxes for the period. Indicate how the event described in the question affects the elements of the financial statements. Use the following letters to record your answer in the box shown below each element. You do not need to enter amounts. Increase = I Decrease = D No Effect = NA(Note that "No Effect" means that the event does not affect that element of the financial statements or that the event causes an increase in that element that is offset by a decrease in
that same element.) Stan's pays the income taxes incurred for the current accounting period. AssetsLiabilitiesStk. EquityRevenuesExpensesNet IncomeStmt of Cash Flows??????? What will be an ideal response?
"To my husband for life, then to my children": A) Creates a fee simple defeasible in the husband
B) Creates a contingent remainder in the children. C) Violates the Rule Against Perpetuities. D) None of the above