Counsell is a simple trust that correctly uses the calendar year for tax purposes. Its income beneficiaries (Kathie, Lynn, Mark, and Norelle) are entitled to the trusts annual accounting income in shares of one-fourth each. For the current calendar year, the trust incurs the following:

Ordinary taxable business income of $40,000

Tax exempt interest income $10,000

Long-term capital gain of $20,000 (allocable to corpus)

Trustee commission expense of $5,000 (allocable to corpus)

Totals Accounting Income Taxable Income Distributable Net Income / Distribution Deduction

Item	Totals	Accounting INcome	Taxable Incom	Distributable Net Income / Distribution Deduction