The Twist Trust has generated $60,000 in depreciation deductions for the year. I

Question

The Twist Trust has generated $60,000 in depreciation deductions for the year. Its accounting income is $75,000. In computing this amount, pursuant to the trust document, depreciation was allocated to corpus. Accounting income was distributed at the trustee's discretion: $25,000 to Hernandez and $50,000 to Jackson.

Compute the depreciation deductions that Hernandez, Jackson, and Twist may claim under the following assumptions. If an amount is zero, enter "0". Do not round any division.

Depreciation Deductions        
          Hernandez   Jackson   Twist Trust
a.     Depreciation deduction allocated to corpus.   Hernandez$_____ Jackson$_____ Twist Trust$_____  
b.     If depreciation was allocated to income. Hernandez$_____ Jackson$_____ Twist Trust$_____      
c.     If the trustee distributed $15,000 each to Hernandez and to Jackson and retained the remaining accounting income. Hernandez$_____ Jackson$_____ Twist Trust$_____
d.     If Twist is an estate (not a trust) and depreciation deduction allocated to corpus.

Hernandez$_____ Jackson$_____ Twist Trust$_____

Explanation / Answer

Depreciation Ratio Hernandez Jackson Twist trust a 60000 01:02 20000 40000 0 b Income for partners 5000 10000 0 c If income distributed 01:02 5000 10000 0 d If it is an estate;total is accounted to estate 60000

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