A trust has net accounting income of $24,000 and incurs a trustees fee of $1,000 in its principal account What is its distribution deduction under the following situations a It distributes $24,000, and all of its income is from taxable sources b It distributes $24,000, and it has tax exempt income ...

a DNI is 23000 24000 net accounting income 1000 fee charged to pr ...

A trust has net accounting income of $24,000 and incurs a trustees fee of $1,000 in its

Question:

A trust has net accounting income of $24,000 and incurs a trustee’s fee of $1,000 in its principal account. What is its deduction under the following situations:
a. It distributes $24,000, and all of its income is from taxable sources.
b. It distributes $24,000, and it has tax-exempt income (net of allocable expenses) of $2,000.
c. It distributes $10,000, and all of its income is from taxable sources.
Distribution
The word "distribution" has several meanings in the financial world, most of them pertaining to the payment of assets from a fund, account, or individual security to an investor or beneficiary. Retirement account distributions are among the most...