# 1. John 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

1. John gives bombardment securities value \$200,000 delay a tax foundation of \$130,000 to a confidence, naming himself as confidenceee. The provisions of the confidence unison claim the confidenceee to pay all dividends and curiosity-behalf to John's twin, Dale. John has the fair to recal the confidence at any era and receive tail designation to the securities. During the confidence's leading year, John, as confidenceee, distributes \$20,000 in dividends and \$10,000 curiosity-behalf from the securities to Dale. None of the pay was tax absolved. In a Word Document, corcortally to the forthcoming questions using 2016 tax regulations:

a) How fur bulk pay does Dale own from the payments? Show your calculations. b) How fur bulk pay does John own from the aloft? Show your calculations.

2. On January 15 of the running year, Joyce, age 24, receives hoard value \$28,000 as a present from her parents. Her parents jointly purchased the hoard six years ago for \$12,000. During the year, Joyce receives \$2,100 dividend pay on the hoard. In December, she sells the hoard for \$39,000. In a Word Document, corcortally to the forthcoming questions using 2016 tax regulations: a) Assuming this is Joyce's simply pay for the year, and her parents are in the 33 percent marginal tax connect, how fur pay tax does the lineage economize as a effect of this present? Show your calculations. b) Are there any give taxes as a effect of this present? Explain. Show your calculations. Review the useful tax publications and forms and corcortally in a Word Muniment to the Unit 4: Final Dropbox. View the rubric under for grading details.