"The Jim Peters Trust holds a vacation home which is rented out and holds some marketable securities and cash. The trust received tax-exempt income of $1,000, taxable income of $3,000, and rental income of $12,000. The trust had expenses of $10,000 which it incurred in maintaining the rental property. The trust distributed $25,000 to Jim s son, Jimmy. What is the amount that the trust can deduct for distributions made to Jimmy? "

The mccolls have made an offer on a new home. the home is new construction and scheduled to be completed by the end of the year. they provide a purchase deposit--a check in the amount of $40,000--to their agent, suzette. suzette, at the broker's direction, deposits the earnest money in the broker's trust fund account within two business days of receipt of the funds. did suzette follow the proper procedures? a. no, the check should not have been cashed. if a check is used as an earnest money deposit, it is to be held until acceptance of the offer. the seller must also be informed the buyer's check is being held and not negotiated.b. yes, suzette deposited the earnest money in the broker's trust fund account as directed. she also deposited the check within three business days of receipt. unless there were written instructions to hold the check until acceptance of the offer, the check may be cashed.c. no, suzette needed to deposit the earnest money in the broker's trust fund account within two days of receipt, not necessarily two business days.d. both a and c