Note: This problem is for the 2020 tax year. Prepare the 2020 fiduciary income tax return (Form 1041) for the Green Trus

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Note: This problem is for the 2020 tax year.
Prepare the 2020 fiduciary income tax return (Form 1041) for the
Green Trust. In addition, determine the amount and character of the
income and expense items that each beneficiary must report for the
year, and prepare a Schedule K-1 for Marcus White. The trust is not
subject to the AMT. The year's activities of the trust include the
following.
Dividend income, all qualified U.S. stocks
$10,000
Taxable interest
income
50,000
Tax-exempt interest income 20,000
Net long-term capital gain, incurred
11/1 25,000
Trustee's fees 6,000
Under the terms of the trust instrument, cost recovery, net
capital gains and losses, and fiduciary fees are allocable to
corpus. The trustee is required to distribute $25,000 to Marcus
every year. For the year, the trustee distributed $40,000 to Marcus
and $40,000 to Marcus's sister, Ellen Hayes. No other distributions
were made.
In computing DNI, the trustee properly assigned all of the
deductible fiduciary's fees to the taxable interest income. The
trustee paid $4,000 in estimated taxes for the year on behalf of
the trust. Any resulting refund is to be credited to the next tax
year. The exempt income was not derived from private activity
bonds.
The trust was created on December 14, 1953. It is not subject to
any recapture taxes, nor can it claim any tax credits. None of its
income was derived under a personal services contract. The trust
has no economic interest in any foreign trust. Its Federal
identification number is 11-1111122.
The trustee, Wisconsin State National Bank, is located at 3100
East Wisconsin Avenue, Milwaukee, WI 53201. Marcus lives at 9880
East North Avenue, Shorewood, WI 53211. His Social Security number
is 123-45-6788. Ellen lives at 6772 East Oklahoma Avenue,
Milwaukee, WI 53204. Her Social Security number is 987-65-4321.
Required:
Prepare the 2020 fiduciary income tax return (Form 1041) for the
Green Trust. In addition, determine the amount and character of the
income and expense items that each beneficiary must report for the
year, and prepare a Schedule K-1 for Marcus White.