A settlor creates a trust for the benefit of three beneficiaries, #1, #2, and #3. Under the terms of the trust document, beneficiary #1 is entitled to receive only capital from the trust. #2 is entitled to receive only income from the trust. #3 is entitled to receive both capital and income from the trust. During the year the trust earned $50,000 in interest income, which was distributed equally between #2 and #3. Also during the year, the trust distributed three parcels of land, one each to #1, #2 and #3. The three parcels each had an original cost of $100,000 and a fair market value on the date of distribution to the beneficiaries of $250,000. What was the trust's taxable income for the year? All folders are up to date. Connected to: Microsoft Exchange