Solved by verified expert :2550. CHAPTER
20—INCOME TAXATION OF TRUSTS AND ESTATES Question CO #25
Remainder beneficiary Shelley receives a $50,000 net operating loss carryover
when the Malone Trust terminates. Shelley deducts this amount
____________________ (for/from) AGI on her Form 1040.
2551. CHAPTER
20—INCOME TAXATION OF TRUSTS AND ESTATES Question CO #26
Income is taxed to the creator of a(n) ____________________ trust, instead of
to the entity.
2552. CHAPTER
20—INCOME TAXATION OF TRUSTS AND ESTATES Question CO #27
The entity is a ___________________ trust if the grantor retains the power to
revoke the trust.
2553. CHAPTER
20—INCOME TAXATION OF TRUSTS AND ESTATES Question CO #28
If the grantor of a trust retains the right to receive borrowed funds from the
trust at a zero interest rate, the entity ____________________ (is, is not)
treated as a grantor trust.
2554. CHAPTER
20—INCOME TAXATION OF TRUSTS AND ESTATES Question CO #29
The accounting income of a trust is distributed to the grantor’s ex-spouse, in
satisfaction of the year’s alimony obligation. The ____________________ is
taxed on the amount of the distribution.
2555. CHAPTER
20—INCOME TAXATION OF TRUSTS AND ESTATES Question CO #30
A Form 1041 must be filed by an estate that recognizes $____________________ or
more gross income for the tax year.
2556. CHAPTER
20—INCOME TAXATION OF TRUSTS AND ESTATES Question CO #31
The Form 1041 of a calendar-year trust is due on ____________________ 15.
2557. CHAPTER
20—INCOME TAXATION OF TRUSTS AND ESTATES Question CO #32
The IRS encourages ____________________ filing for Forms 1041.
2558. CHAPTER
20—INCOME TAXATION OF TRUSTS AND ESTATES Question CO #33
Beneficiary information concerning a trust’s income and distributions are
conveyed on Schedule ____________________ of the Form 1041.
