40.

A new mutual fund company is started and is created as an open-end trust. In its first year of operation, this mutual fund trust earns $850,000 in investment income. This total is comprised of $500,000 in capital gains, $250,000 in dividends and $100,000 in interest income. How much of this total of $850,000 in investment income will be taxable to the trust at the end of year 1?

		$0.00
		$100,000 in interest income
		$100,000 in interest income and $250,000 in dividend income
		$500,000 in capital gains