Computing dni, taxable income (lo. 2, 3)

the allwardt trust is a simple trust that correctly uses the calendar year for tax purposes. its income beneficiaries (lucy and ethel) are entitled to the trust's annual accounting income in shares of one-half each.

for the current tax year, allwardt reports the following.

ordinary income $100,000
long-term capital gains 30,000
trustee commission expense, allocable to corpus 5,000
the trust instrument allocates the capital gain to income.

a. each beneficiary is entitled to receive income of $ .

b. the trust's dni is $ .

c. the trust's selecttaxable incomelosscorrect 1 of item 3 is $ .

d. each of the beneficiaries can report $ of gross income.

Dahlia enterprises needs someone to supply it with 127,000 cartons of machine screws per year to support its manufacturing needs over the next five years, and you’ve decided to bid on the contract. it will cost you $940,000 to install the equipment necessary to start production; you’ll depreciate this cost straight-line to zero over the project’s life. you estimate that in five years, this equipment can be salvaged for $77,000. your fixed production costs will be $332,000 per year, and your variable production costs should be $11.00 per carton. you also need an initial investment in net working capital of $82,000. if your tax rate is 30 percent and your required return is 11 percent on your investment, what bid price should you submit? (do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))