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A trust has net accounting income of $24,000 and incurs a trustee's fee of $500 in its principal account. Review the following situations: a. It

A trust has net accounting income of $24,000 and incurs a trustee's fee of $500 in its principal account. Review 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 $1,000.

c.

It distributes $8,000 and all of its income is from taxable sources.

What is it's distribution deduction under each of the situations?

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