A simple trust has the following receipts and expenditures for the current year. The trust instrument classifies gains,losses, and trustee'sfees as part of principal.

Dividends

$16,500

Long-term capital gain

8,000

Trustee's fees

3,000

Distribution to beneficiary

16,500

Dividend		$16,500
Long-term capital gain		8,000
Minus:	Trustee's fees	(3,000)
	Distribution deduction	(13,500)
	Personal exemption	(300)
Taxable income		$7,700

The trust's taxable income would be

$

if the trust received $5,500 interest from tax-exempt bonds, and distributed

$22,000. This is

the taxable income under the original scenario.

How would the trust's taxable income change if the trust in addition received $5,500

interest from tax-exempt bonds, and it distributed $22,000

instead of $16,500?