Accounting Homework Help

POWER POINT*****

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 interest to John’s brother, Dale. John has the right to revoke the trust at any time and take back title to the securities. During the trust’s first year, John, as trustee, distributes $20,000 in dividends and $10,000 interest from the securities to Dale. In a PowerPoint presentation, explain to John and Dale the special rules that apply to trusts where the creator (grantor) of the trust retains certain rights. Respond using Microsoft PowerPoint and submit to the Unit 6: Final Dropbox. View the rubric below for grading details.