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The entity reports the following transactions for the 2021 tax year. The trustee accumulates all accounting income for the year. Operating income from a business $865,000 Dividend income, all from U.S. corporations (20% tax rate) 51,900 Interest income, City of San Antonio bonds 6,920,000 Trustee fees, deductible portion (25,950) Net rental losses, passive activity (173,000) Click here to access tax table for this problem. Carryout the tax computations to two decimal places and round the final tax liability to the nearest dollar. Compute the Federal income tax liability for the Valerio Trust by providing the following amounts: The amount of the trustee's gross income taxed at 20% for the Valerio Trust is $fill in the blank 1 51,900 . The Trustee taxable income taxed at ordinary rates for the Valerio Trust is $fill in the blank 2 838,950 . The Federal income tax liability for the Valerio Trust is $fill in the blank 3

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The Federal income tax liability for the Valerio Trust by providing the following amounts:

1. The amount of the trustee's gross income taxed at 20% for the Valerio Trust is $51,900.

2. The Trustee's taxable income taxed at ordinary rates for the Valerio Trust is $839,050.

3. The Federal income tax liability for the Valerio Trust is $28,497.

Data and Calculations:

Operating income from business = $865,000

Dividend income (20% tax rate) = $51,900

Interest income, City of San Antonio bonds = $6,920,000

Trustee fees, a deductible portion = (25,950)

Net rental losses, passive activity = (173,000)

Taxable Income:

Active Activity:

Operating income from business = $865,000

Trustee fees, a deductible portion =  (25,950)

Taxable income (active activity) =   $839,050

Tax expense (income tax table) =   $18,117.00

Passive Activity:

Dividend income  = $51,900

Tax expense (20% tax rate) = $10,380 ($51,900 x 20%)

Tax liability:

Active income =   $18,117

Passive income = 10,380

Total liability =   $28,497

Learn more about Trustee's taxable incomes at https://brainly.com/question/20376606

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Question Completion:

Income Tax Rates - Estates and Trusts

Tax Year 2021

Taxable income                          The Tax Is:

Over-                But Not Over-

$ 0                      $ 2,650           10%                        $0

$2,650                  9,550      $ 265.00 + 24%         1,921.00

$9,550                13,050      $1,921.00 + 35%        3,146.00

13,050              ------------      $3,146.00 + 37%     13,050.00

Total tax expense for active activity =               $18,117.00

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