Donald Is the Trustee of a Trust Created by Simpson,with

Donald is the trustee of a trust created by Simpson,with Adams as the beneficiary.The trust property consists almost entirely of income-producing real property-office buildings,apartment complexes,etc.By placing a "P" or an "I" in the appropriate space,indicate whether the following fund transactions should be allocated to principal (P)or to interest (I).
________ 1.Rental income received from tenants on trust property.
________ 2.Capital gains realized from the sale of trust real estate.
________ 3.Property tax payments on trust property.
________ 4.Building management fees for trust property.
________ 5.Costs of ordinary repairs to trust property.
________ 6.Property insurance premiums on trust property.
________ 7.The cost of long-term permanent improvements to trust property.

Correct Answer:

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1 - I
2 - P
3 - I
4 - I
5 - I
6 - I
7 - ...

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