Compute the Federal income tax liability for the Valerio Trust. The entity reports the following transactions for the 2012 tax year. The trustee accumulates all accounting income for the year.
Operating income from a business |
$ 400,000 |
Dividend income, all from U.S. corporations |
30,000 |
Interest income, City of San Antonio bonds |
40,000 |
Fiduciary fees, deductible portion |
10,000 |
Net rental losses, passive activity |
(100,000) |