2018 tax laws 32. LO 12.2] George transfers investment securities worth $200,000 with a...
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Accounting
2018 tax laws
32. LO 12.2] George transfers investment securities worth $200,000 with a tax basis of $130,000 to a trust, naming himself as trustee. The terms of the trust agreement require the trustee to pay all dividends and interest to George's brother, Mark. George has the right to revoke the trust at any time and take back title to the securities. During the trust's first year, George, as trustee, distributes $20,000 in dividends and $10,000 interest from the securities to Mark. None of the income was tax exempt. a. How much gross income does Mark recognize from the payments? b. How much gross income does George recognize from the above
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