all of the trust income is accumulated with andi rsquo s periodic contributions so t 625447
Andi Corp. issued $1,000,000 face amount of bonds in 1999 and established a sinking fund to pay the debt at maturity. The bondholders appointed an independent trustee to invest the sinking fund contributions and to administer the trust. In 2007, the sinking fund earned $60,000 in interest on bank deposits and $8,000 in net long-term capital gains. All of the trust income is accumulated with Andi’s periodic contributions so that the aggregate amount will be sufficient to pay the bonds when they mature. What amount of trust income was taxable to Andi in 2007?
- $0
- $ 8,000
- $60,000
- $68,000