Introduction to Federal Taxation Exam Bank
Course Introduction
Introduction to Federal Taxation provides a comprehensive overview of the principles and practices underlying the U.S. federal income tax system. The course examines the fundamental concepts of gross income, deductions, credits, tax rates, and filing requirements primarily for individuals, with an introduction to corporate and partnership taxation. Emphasis is placed on understanding the relevant sections of the Internal Revenue Code, identifying tax planning opportunities, and applying tax laws to practical problems. Students will also gain familiarity with tax forms, reporting obligations, and current tax policy issues, laying a solid foundation for further study in taxation and accounting.
Recommended Textbook
South western Federal Taxation 2017 Comprehensive Edition 40th Edition by William H. Hoffman
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Chapter 1: An Introduction to Taxation and Understanding
the Federal Tax Law
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Q1) An inheritance tax is a tax on a decedent's right to pass property at death.
A)True
B)False
Answer: False
Q2) Paige is the sole shareholder of Citron Corporation.During the year, Paige leases a building to Citron for a monthly rental of $80,000.If the fair rental value of the building is $60,000, what are the income tax consequences to the parties involved?
Answer: The rent charged by Paige is not "arms length"; as such, Citron Corporation's rent deduction is $60,000 (not $80,000).The $20,000 difference is a nondeductible dividend distribution.For Paige, the change merely requires reclassification.Instead of $80,000 of rent income, she has $60,000 of rent income and $20,000 of dividend income.
Q3) Mona inherits her mother's personal residence, which she converts to a furnished rent house.These changes should not affect the amount of ad valorem property taxes levied on the properties.
A)True
B)False
Answer: False
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Page 3
Chapter 2: Working With the Tax Law
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Q1) Proposed Regulations are binding on IRS agents.
A)True
B)False
Answer: False
Q2) Which court decisions are published in paper format by the U.S.government?
A)U.S.Tax Court Memorandum decision.
B)U.S.Tax Court regular decision.
C)Fifth Circuit U.S.Court of Appeals decision.
D)Court of Federal Claims decision.
E)All of the above.
Answer: B
Q3) The IRS issues an acquiescence or nonacquiescence only for regular Tax Court decisions.
A)True
B)False
Answer: False
Q4) A taxpayer can obtain a jury trial in the U.S.Court of Federal Claims.
A)True
B)False Answer: False
Page 4
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Chapter 3: Computing the Tax
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Q1) Which, if any, of the following is a deduction for AGI?
A)State and local sales taxes.
B)Interest on home mortgage.
C)Charitable contributions.
D)Unreimbursed moving expenses of an employee.
E)None of the above.
Answer: D
Q2) Benjamin, age 16, is claimed as a dependent by his parents.During 2012, he earned $700 at a car wash.Benjamin's standard deduction is $1,250 ($950 + $300).
A)True
B)False
Answer: False
Q3) Mel is not quite sure whether an expenditure he made is a deduction for AGI or a deduction from AGI. Since he plans to choose the standard deduction option for the year, does the distinction matter? Explain.
Answer: It makes a great deal of difference if the expenditure is a deduction for AGI. If it is, Mel will benefit taxwise. It makes no difference, however, if it is a deduction from. The standard deduction is in lieu of itemized deductions.
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Chapter 4: Gross Income: Concepts and Inclusions
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Q1) On January 1, 2012, an accrual basis taxpayer entered into a contract to provide termite inspection service each month for 36 months.The amount received for the contract was $2,400. The taxpayer should report $1,600 of income in 2013.
A)True
B)False
Q2) Betty purchased an annuity for $24,000 in 2012.Under the contract, Betty will receive $300 each month for the rest of her life.According to the actuarial estimates, Betty will live to receive 96 payments and will receive a 3% return on her original investment.
A)If Betty collects $3,000 in 2012, her gross income is $630 (.03 ´ $21,000).
B)Betty has no gross income until she has collected $24,000.
C)If Betty lives to collect more than 96 payments, all of the amounts collected after the 96th payment must be included in taxable income.
D)If Betty lives to collect only 60 payments before her death, she will report a $6,000 loss from the annuity [$24,000 - (60 ´ $300) = $6,000] on her final return.
E)None of the above.
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Chapter 5: Gross Income: Exclusions
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Q1) Beverly died during the current year.At the time of her death, her accrued salary and commissions totaled $3,000 and were paid to her husband.The employer also paid the husband $35,000 which represented an amount equal to Beverly's salary for the year prior to her death.The employer had a policy of making the salary payments to "help out the family in the time of its greatest need." Beverly's spouse collected her interest in the employer's qualified profit sharing plan amounting to $30,000.As beneficiary of his wife's life insurance policy, Beverly's spouse elected to collect the proceeds in installments.In the year of death, he collected $8,000 which included $1,500 interest income.Which of these items are subject to income tax for Beverly's spouse?
Q2) Meg's employer carries insurance on its employees that will pay an employee his or her regular salary while the employee is away from work due to illness.The premiums for Meg's coverage were $1,200.Meg was absent from work for two months as a result of a kidney infection.Meg's employer's insurance company paid Meg's regular salary of $8,000 while she was away from work.Meg also collected $2,000 on a wage continuation policy she had purchased. Meg is not taxed on any of the above amounts.
A)True
B)False
Q3) What Federal income tax benefits are provided for college students?
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Chapter 6: Deductions and Losses: in General
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Q1) Are there any circumstances under which lobbying expenditures are deductible?
Q2) Which of the following is not a "trade or business" expense?
A)Interest on business indebtedness.
B)Property taxes on business property.
C)Parking ticket paid on business auto.
D)Depreciation on business property.
E)All of the above are "trade or business" expenses.
Q3) If an activity involves horses, a profit in at least two of seven consecutive years meets the presumptive rule of § 183.
A)True
B)False
Q4) The legal cost of having a will prepared is not deductible.
A)True
B)False
Q5) Amos, a shareholder-employee of Pigeon, Inc., receives a $400,000 salary.The IRS classifies $125,000 of this amount as unreasonable compensation.The effect of this reclassification is to decrease Amos' gross income by $125,000 and increase Pigeon's gross income by $125,000.
A)True
B)False
Page 8
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Chapter 7: Deductions and Losses: Certain Business
Expenses and Losses
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Q1) Taxpayer's home was destroyed by a storm in the current year and the area was declared a disaster area. If the taxpayer elects to treat the loss as having occurred in the prior year, it will be subject to the 10%-of-AGI reduction based on the AGI of the current year.
A)True
B)False
Q2) Several years ago, John purchased 2,000 shares of Red Corporation § 1244 stock from Mark for $40,000. Last year, John sold one-half of his Red Corporation stock to Mike for $12,000. During the current year, John sold the remaining Red Corporation stock for $3,000. John has a $17,000 ($3,000 - $20,000) ordinary loss for the current year.
A)True
B)False
Q3) The amount of loss for partial destruction of business property is the decline in fair market value of the business property.
A)True
B)False
Q4) Identify the factors that should be considered in determining whether a transaction is a bona fide loan or a gift.
Page 9
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Chapter 8: Depreciation, Cost Recovery, Amortization, and Depletion
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Q1) The statutory dollar cost recovery limits under § 280F do not apply to all automobiles.
A)True
B)False
Q2) If a taxpayer uses regular MACRS for all property, an alternative minimum tax adjustment is made with respect to the depreciation on all property, regardless of the class life.
A)True
B)False
Q3) The inclusion amount for a leased automobile is adjusted by a business usage percentage.
A)True
B)False
Q4) Any § 179 expense amount that is carried forward is subject to the business income limitation in the carryforward year.
A)True
B)False
Q5) A purchased trademark is a § 197 intangible.
A)True
B)False
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Chapter 9: Deductions: Employee and
Self-Employed-Related Expenses
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Q1) Elaine, the regional sales director for a manufacturer of exercise equipment, pays $2,500 to rent a skybox for a visiting performance of the Harlem Globetrotters.The skybox holds 10 seats, and Elaine invites 7 clients to the event.Nonluxury seats range in price from $80 to $120.The refreshments provided during the event cost $600.If Elaine meets all of the requirements for deductibility (i.e., business discussion, substantiation), she may deduct:
A)$1,550.
B)$1,500.
C)$1,260.
D)$1,100.
E)$900.
Q2) Both traditional and Roth IRAs possess the advantage of tax-free accumulation of income within the plan.
A)True
B)False
Q3) In the case of an office in the home deduction, the exclusive business use test does not apply when the home is used as a daycare center.
A)True
B)False
Page 11
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Chapter 10: Deductions and Losses: Certain Itemized
Deductions
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Q1) The City of Ogden was devastated by a tornado in April 2012, leaving many families in need of food, clothing, shelter, and other necessities. Betty contributed $500 to a family whose home was completely destroyed by the tornado. Jack contributed $700 to the family's church, which gave the money to the family. Discuss the deductibility of these contributions.
Q2) Linda borrowed $60,000 from her parents for a down payment on a condominium.She paid interest of $5,500 in 2010, $0 in 2011, and $9,000 in 2012.The IRS disallowed the deduction. Can you offer any explanation for the disallowance?
Q3) Matt, a calendar year taxpayer, pays $11,000 in medical expenses in 2012.He expects $5,000 of these expenses to be reimbursed by an insurance company in 2013.In determining his medical expense deduction for 2012, Matt must reduce his 2012 medical expenses by the amount of the reimbursement he expects in 2013.
A)True
B)False
Q4) Employee business expenses for travel qualify as itemized deductions subject to the 2% floor if they are not reimbursed.
A)True
B)False
Page 12
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Chapter 11: Investor Losses
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Q1) Sarah, who owns a 50% interest in a grocery store, was a material participant in the activity for the last 25 years.She retired from the grocery store at the end of last year and will not participate in the activity in the future.However, she continues to be a material participant in an office supply store in which she is a 50% partner.The operations of the grocery store resulted in a loss for the current year and Sarah's share of the loss is $40,000.Sarah's share of the income from the office supply store is $75,000.She does not own interests in any other activities.
A)Sarah cannot deduct the $40,000 loss from the grocery store because she is not a material participant.
B)Sarah will not be able to deduct any losses from the grocery store until future years.
C)Sarah can offset the $40,000 loss from the grocery store against the $75,000 of income from the office supply store.
D)Sarah will not be able to deduct any losses from the grocery store until she has been retired for at least four years.
E)None of the above.
Q2) Describe the general rules that limit the deduction of investment interest expense.
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13
Chapter 12: Tax Credits and Payments
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Q1) The calculation of FICA and the self-employment tax both involve two components: the Social Security portion and the Medicare portion, each portion of which is imposed on the same base amounts.
A)True
B)False
Q2) In computing the foreign tax credit, the greater of the foreign income taxes paid or the overall limitation is allowed.
A)True
B)False
Q3) Susan generated $55,000 of net earnings from the conduct of a tax preparation business that she operated during the tax-filing season.She also received wages of $60,000 from her full-time job.Compute the self-employment taxes due for 2012.
Q4) The additional Medicare taxes assessed on high-income individuals carry differing tax rates depending on the tax base.
A)True
B)False
Q5) How does the FICA tax compare to the self-employment tax? How are these two taxes similar and how do they differ?
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Page 14
Chapter 13: Property Transactions: Determination of Gain or
Loss, Basis Considerations, and Nontaxable
Exchanges-Part 1
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Q1) Kelly inherits land which had a basis to the decedent of $95,000 and a fair market value of $50,000 on August 4, 2012, the date of the decedent's death.The executor distributes the land to Kelly on November 12, 2012, at which time the fair market value is $49,000.The fair market value on February 4, 2013, is $45,000.In filing the estate tax return, the executor elects the alternate valuation date.Kelly sells the land on June 10, 2013, for $48,000.What is her recognized gain or loss?
A)($1,000).
B)($2,000).
C)($47,000).
D)$1,000.
E)None of the above.
Q2) If boot in the form of cash is given in a § 1031 like-kind exchange, the realized gain may be recognized.
A)True
B)False
Q3) The holding period for property acquired by gift is automatically long term.
A)True
B)False
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Chapter 13: Property Transactions: Determination of Gain or
Loss, Basis Considerations, and Nontaxable
Exchanges-Part 2
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Q1) Lois received nontaxable stock rights with a fair market value of $4,000.The fair market value of the stock on which the rights were received is $24,000 (cost $14,000).Assume the rights are exercised by paying $31,000 plus the rights.Discuss how to calculate the basis of the old stock and the basis of the new stock.
Q2) Explain how the sale of investment property at a loss to a brother is treated differently from a sale to a nephew.
Q3) Discuss the treatment of losses from involuntary conversions.
Q4) Discuss the application of holding period rules to property acquired by gift and inheritance.
Q5) What kinds of property do not qualify under the like-kind provisions?
Q6) Discuss the relationship between realized gain and boot received in a § 1031 like-kind exchange.
Q7) Why is it generally undesirable to pass property by death when its fair market value is less than basis?
Q8) Mitchell owned an SUV that he had purchased two years ago for $48,000 and which he transfers to his sole proprietorship.How is the sole proprietorship's basis for the SUV calculated? What additional information does Mitchell need? Page 16
Q9) Define a bargain purchase of property and discuss the related tax consequences.
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Chapter 14: Property Transactions: Capital Gains and Losses,
1231, Recapture Provisions
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Q1) Which of the following events could result in § 1250 depreciation recapture?
A)Sale at a loss of a depreciable business building held more than one year.
B)Sale at a gain of a business building held more than a year on which straight-line depreciation was taken.
C)Sale at a gain of a depreciable business building held for 9 months.
D)Sale at a gain of depreciable equipment held more than a year on which straight-line depreciation was taken.
E)None of the above.
Q2) The tax law requires that capital gains and losses be separated from other types of gains and losses because there are limitations on the deduction of net capital losses.
A)True
B)False
Q3) A franchisor licenses its mode of business operation to a franchisee.
A)True
B)False
Q4) All collectibles long-term gain is subject to a potential alternative tax rate of 28%.
A)True
B)False
Page 18
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Chapter 15: Alternative Minimum Tax
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Q1) What is the purpose of the AMT exemption amount? What is the maximum amount for each filing status for an individual taxpayer and for a corporate taxpayer?
Q2) Tad is a vice-president of Ruby Corporation. In 2012, he acquired 800 shares of Ruby Corporation stock under the corporation's incentive stock option (ISO) plan for an option price of $33 per share. At the date of exercise in 2012, the fair market value of the stock was $43 per share. The stock became freely transferable in 2013. Tad sold the 800 shares for $50 per share in 2014. Which of the following statements is incorrect?
A)Acquisition of the stock in 2012 had no effect on Tad's taxable income, but increased AMTI by $8,000 in 2012.
B)Tad's regular income tax basis for the stock is $26,400 and his AMT basis is $34,400 in 2012.
C)Tad must report a negative AMT adjustment of $5,000 in 2013.
D)Tad will have a positive AMT adjustment of $5,000 in 2014.
E)All of the above are correct.
Q3) Can AMT adjustments and preferences be both positive and negative?
Q4) What itemized deductions are allowed for both regular income tax purposes and for AMT purposes?
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Chapter 16: Accounting Periods and Methods
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Q1) Juan, not a dealer in real property, sold land that he owned.His adjusted basis in the land was $500,000 and it was encumbered by a mortgage for $200,000.The terms of the sale required the buyer to pay Juan $100,000 on the date of the sale.The buyer assumed Juan's mortgage and gave Juan a note for $600,000 (plus interest at the Federal rate) due in the following year.What is the gross profit percentage (gain ¸ contract price)?
A)300/900 = 33.3%.
B)400/700 = 57.14%.
C)400/600 = 66.67%.
D)500/900 = 55.55%.
E)None of the above.
Q2) For purposes of determining the partnership's tax year, there may be more than one principal partner.
A)True
B)False
Q3) What incentives do the tax accounting rules provide for taxpayers to voluntarily change from an incorrect method of accounting that has reduced the company's tax liability in prior years?
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Page 20
Chapter 17: Corporations: Introduction and Operating Rules
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Q1) Generally, corporate net operating loss can be carried back 3 years and forward 5 years to offset taxable income for those years.
A)True
B)False
Q2) Nancy is a 40% shareholder and president of Robin Corporation, a regular corporation. The board of directors of Robin has decided to pay Nancy a $175,000 bonus for the year based on her outstanding performance. The directors want to pay the $175,000 as salary, but Nancy would prefer to have it paid as a dividend. If both Robin Corporation and Nancy are in a 35% marginal tax bracket irrespective of the treatment of the bonus, discuss which form of payment would be most beneficial for each party. (Ignore any employment tax considerations.)
Q3) An expense that is deducted in computing net income per books but not deductible in computing taxable income is a subtraction item on Schedule M-1.
A)True B)False
Q4) Compare the taxation of C corporations with that of individual taxpayers. Provide several examples of similarities and differences in your discussion.
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Chapter 18: Corporations: Organization and Capital Structure
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Q1) When forming a corporation, a transferor-shareholder may choose to receive some corporate debt along with stock. Identify some of the issues the transferor must consider when deciding whether debt should be a part of the transaction.
Q2) Wren Corporation (a minority shareholder in Lark Corporation) has made loans to Lark Corporation that become worthless in the current year.
A)Wren Corporation is not permitted a deduction for the loans.
B)The loans result in a nonbusiness bad debt deduction to Wren Corporation.
C)The loans provide Wren Corporation with a business bad debt deduction.
D)Wren claims a capital loss due to the uncollectible loans.
E)None of the above.
Q3) A shareholder lends money to his corporation in his capacity as an investor.If the loans become worthless, a business bad debt results.
A)True
B)False
Q4) In structuring the capitalization of a corporation, the tax law is neutral for the investor as to debt versus equity financing.
A)True
B)False
Page 22
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Chapter 19: Corporations: Distributions Not in Complete Liquidation
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Q1) Gold Corporation has accumulated E & P of $2 million as of January 1 of the current year.During the year, it expects to have earnings from operations of $1,680,000 and to distribute $900,000 in cash to shareholders.Gold Corporation also expects to sell an asset for a loss of $2 million.Thus, it anticipates incurring a deficit of $320,000 for the year.What can Gold do to minimize the amount of dividend income to its shareholders?
Q2) Five years ago, Eleanor transferred property she had used in her sole proprietorship to Blue Corporation for 1,000 shares of Blue Corporation in a transaction that qualified under § 351.The assets had a tax basis to her of $100,000 and a fair market value of $270,000 on the date of the transfer.In the current year, Blue Corporation (E & P of $800,000) redeems 250 shares from Eleanor for $220,000 in a transaction that does not qualify for sale or exchange treatment.With respect to the redemption, Eleanor will have a:
A)$195,000 capital gain.
B)$220,000 capital gain.
C)$195,000 dividend.
D)$220,000 dividend.
E)None of the above.
Q3) When is a redemption to pay death taxes under § 303 most advantageous?
Q4) How does the payment of a property dividend affect E & P?
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Chapter 20: Corporations: Distributions in Complete
Liquidation and an Overview of Reorganizations
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Q1) The treatment of corporate reorganizations is similar to like-kind exchanges.
A)True
B)False
Q2) The related-party loss limitation does not apply to a distribution of property in complete liquidation that was appreciated (fair market value greater than basis) when it was transferred to the corporation.
A)True
B)False
Q3) Which of the following statements is true concerning all types of tax-free corporate reorganizations?
A)Assets are transferred from one corporation to another.
B)Stock is exchanged with shareholders.
C)Liabilities that are assumed when cash is also used as consideration will be treated as boot.
D)Corporations and shareholders involved in the reorganization may recognize gains but not losses.
E)None of the above statements is true.
Q4) What are the tax consequences of a § 332 liquidation to the parent corporation, subsidiary corporation, and minority shareholder?
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Chapter 21: Partnerships
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Q1) In a proportionate nonliquidating distribution, cash is deemed to be distributed first, followed by unrealized receivables and inventory and, last, capital and other assets.
A)True
B)False
Q2) A distribution cannot be "proportionate" if only one partner receives assets from the partnership.
A)True
B)False
Q3) Section 721 provides that, in general, no gain or loss is recognized by the partnership or the partner on contribution of appreciated or depreciated property to a partnership in exchange for an interest in the partnership.
A)True
B)False
Q4) A property distribution from a partnership to a partner is generally taxable to the partner.
A)True
B)False
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Chapter 22: S: Corporations
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Q1) An S shareholder's stock basis includes a ratable share of any S corporation liabilities.
A)True
B)False
Q2) All tax preference items flow through the S corporation, to be included in the shareholders' AMT calculations.
A)True
B)False
Q3) An S shareholder's stock basis is reduced by flow-through losses before accounting for distributions.
A)True
B)False
Q4) Which statement is incorrect?
A)S corporations are treated as corporations under state law.
B)S corporations resemble partnerships under the Federal income tax law.
C)The alternative minimum tax applies to some S corporations.
D)An S corporation may not allocate income and deduction items to specific shareholders like a partnership can.
Q5) Tax-exempt income is listed on Schedule ____________________ of Form 1120S.
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Chapter 23: Exempt Entities
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Q1) Which of the following is a requirement for exempt status?
A)The organization does not exert political influence.
B)The organization has not been subject to intermediate sanctions for the past 3 taxable years.
C)The organization serves some type of common good.
D)Only a.and c.
E)a., b., and c.
Q2) Which requirements must be satisfied for an exempt organization to be classified as an unrelated trade or business? Is being classified as an unrelated trade or business good or bad?
Q3) The excise tax imposed on a private foundation's investment income can be imposed as an initial (first-level) tax but cannot be imposed as an additional (second-level) tax.
A)True
B)False
Q4) Are some exempt organizations eligible to be recipients of contributions for which the donor does not qualify for a charitable contribution deduction?
Q5) What are intermediate sanctions and to what types of exempt organizations do they apply?
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Chapter 24: Multistate Corporate Taxation
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Q1) Under P.L.86-272, which of the following transactions by itself would create nexus with a state?
A)Inspection by a sales employee of the customer's inventory for specific product lines.
B)Using an independent contractor who acts as a manufacturer's representative for the taxpayer through a sales office in the state.
C)Executing a sales campaign, using an advertising agency acting as an independent contractor for the taxpayer.
D)Maintenance of inventory in the state by an independent contractor under a consignment plan.
Q2) State and local politicians tend to apply new and increased taxes to taxpayers who are visitors to the jurisdiction, such as a tax on auto rentals, because the taxpayer cannot vote to reelect the lawmaker.
A)True
B)False
Q3) An ad valorem property tax is based on the asset's current
Q4) Typically, the state's payroll factor ____________________ (does/does not) include the fringe benefits provided to its sales force.
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Page 28
Chapter 25: Taxation of International Transactions
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148 Verified Questions
148 Flashcards
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Sample Questions
Q1) BlueCo, a domestic corporation, incorporates its foreign branch in a § 351 exchange, creating GreenCo, a wholly owned foreign corporation.BlueCo transfers $200 in inventory (basis = $50) and $900 in land (basis = $950) to GreenCo.GreenCo uses these assets in carrying on a trade or business outside the United States.What gain or loss, if any, is recognized as a result of this transaction?
A)$0.
B)($50).
C)$100.
D)$150.
Q2) Waltz, Inc., a U.S.taxpayer, pays foreign taxes of $50,000 on foreign-source general basket income of $90,000. Waltz's worldwide taxable income is $450,000, on which it owes U.S.taxes of $157,500 before FTC. Waltz's FTC is $50,000.
A)True
B)False
Q3) A nonresident alien with U.S.-source income effectively connected with a U.S.trade or business claims effectively connected business deductions against that income.
A)True
B)False
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Chapter 26: Tax Practice and Ethics
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147 Verified Questions
147 Flashcards
Source URL: https://quizplus.com/quiz/70927
Sample Questions
Q1) Circular 230 prohibits a tax preparer from charging an unconscionable fee for his/her services.
A)True
B)False
Q2) Does the tax preparer enjoy an "attorney-client privilege" of confidentiality with his or her clients?
Q3) The tax ____________________ workpapers are not privileged communications that can be kept confidential from an IRS subpoena.
Q4) The IRS periodically updates its list of "audit initiatives," the areas of tax enforcement that will receive special attention during the current tax year. List five or more of the current IRS audit initiatives.
Q5) When a "prompt assessment" of the tax liability is requested, the taxpayer essentially is volunteering for an IRS audit of the tax return.
A)True
B)False
Q6) According to AICPA rules, the CPA cannot take an aggressive tax return position on the basis of the "audit ____________________."
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Page 30
Chapter 28: Income Taxation of Trusts and Estates
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145 Verified Questions
145 Flashcards
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Sample Questions
Q1) The Prakash Trust is required to pay its entire annual accounting income to the Daytona Museum, a qualifying charity.The trust's personal exemption is:
A)$0.
B)$100.
C)$300.
D)$600.
Q2) This year, the Huang Trust distributed all of its accounting income and $1,000 from corpus.Huang's taxable income for the year is:
A)$0.
B)($100).
C)($300).
D)($1,000).
Q3) List the three major functions of distributable net income (DNI) as that amount is used under Federal income tax law.
Q4) A Form 1041 must be filed by an estate that recognizes $____________________ or more gross income for the tax year.
Q5) The trust usually makes a distribution to the income beneficiaries in the amount of its fiduciary ____________________ income.
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