8. Which of the following deductions does not affect trust accounting income?

8.ÿÿÿÿÿÿÿWhich of the following deductions does not affect trust accounting income?a.ÿÿÿÿÿrental expenses.b.ÿÿÿÿattorney’s fees allocable to income.c.ÿÿÿÿÿtrustee’s fees allocable to income.d.ÿÿÿÿtrustee’s fees allocable to principal.ÿ9. What problem does the separate share rule alleviate?a.ÿÿÿÿÿprevents unequal distributions of tangible personal property from an estate or trust.b.ÿÿÿÿÿsatisfies state law requirements regarding distributions from the residuary portion or an estate or trust.c.ÿÿÿÿÿreduces risk of a successful will or trust contest.d.ÿÿÿÿpreventsÿa beneficiary being taxed on income accumulated for another beneficiary.ÿ10. ÿÿÿWhich one of the following is correct?a.ÿÿÿÿÿfor fiduciary accounting, the allocation of receipts between income and principal is based primarily on the governing instrument(will or trust agreement) and secondarily on state law (uniform principal and income act).b.ÿÿÿÿfor fiduciary accounting, the accounting period must be identical to the income tax period for the estate or trust (calendar or fiscal).c.ÿÿÿÿÿfor fiduciary accounting, GAAP (generally accepted accounting principles) apply along with the UP&IA and prevail in the event of a conflict.d.ÿÿÿÿfor fiduciary accounting, a certified fiduciary accountant must prepare the accounting in order for the shortest statute of limitations to apply.ÿ11.ÿÿÿÿÿEstate’s income tax year is February 1 through January 31. Personal representative makes a distribution to residuary beneficiaryÿZ, a calendar year taxpayer, ÿon March 12017 that carries out $5,000 DNI to Z.ÿZ will report the incomea. ÿÿÿÿÿÿÿon her 2018 Form 1040 only.b.ÿÿÿÿÿÿÿon her 2017 Form 1040 only.c. ÿÿÿÿÿÿÿon her 2018 1040 if she properly so elects.d. ÿÿÿÿÿÿon her 2017 1040 if she properly so elects.12. ÿÿÿÿThe trust’s final tax termination year ends on June 30. The trust realized $5,000 on capital gain on May 1.ÿThe capital gain incomea.ÿÿÿÿÿÿÿÿwill be taxed to the trust as not part of DNI.b.ÿÿÿÿÿÿÿwill be included in DNI.c.ÿÿÿÿÿÿÿÿcannot be offset by capital losses in year of termination.d.ÿÿÿÿÿÿÿwill be taxed separately to the beneficiaries but is not part of DNI.