Essay
Ingrid is the trustee of a trust in which Jens has a life estate and Karin has the remainder interest. The trust property is a farm. The farm is leased to Lars, who pays the rent to the trust. Property taxes are paid annually on the farm. Long-term improvements are occasionally made and paid for. A section of the farm's land is sold to Margo, one of the farm's neigh?bors. How are the payments for taxes and improvements classified (ordi?nary or extraordinary)? How are the receipts of rent and the pro?ceeds from the land sale classified? To whom are these costs and benefits allocated?
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