Question

incurred $10,000 of portfolio income. Its corporate trustee paid fiduciary fees of $1,000 therefrom, and also paid $1,000 in premiums for a life insurance policy on Marcia, the grantor of the trust. How much gross income does Marcia include with respect to these trust activities

Answer 1

$1000

Step-by-step explanation:

Portfolio income = $10,000

Fiduciary fees = $1,000

premiums paid for life insurance on Marcia = $1000

Fiduciary fees are fees charged by trustees and executors for services that they rendered

Therefore The amount of gross income Marcia will include being the grantor of the trust = $1000 ( 10% of portfolio income )