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.

a. Each beneficiary will receive;

= Ordinary income / 2

= 100,000/2

= $50,000

b. Trust's DNI is;

= Accounting income + exemption - long term capital gains

= (Ordinary income + long term gain - commission - personal exemption) + exemption - long term capital gains

= (100,000 + 30,000 - 5,000 - 300) + 300 - 30,000

= $95,000

c. Taxable income = Long term gain - exemption

= 30,000 - 300

= $29,700

d. Each beneficiary can report;

= DNI/ 2

= 95,000/2

= $47,500

a manufacturer of printed circuit boards uses exponential smoothing with trend to forecast monthly demand of its product. at the end of december, the company wishes to forecast sales for january. the estimate of trend through november has been 200 additional boards sold per month. average sales have been around 1000 units per month. the demand for december was 1100 units. the company uses α = 0.20 and β = 0.10. make a forecast including trend for the month of january.