Determination of Taxable Income. A simple trust has the following receipts and expenditures for the current year. The long-term capital gain and trustee's fees are part of principal. Dividends $20,000 Long-term capital gain $15,000 Trustee's fees $ 1,500 Distribution to beneficiary $20,000 a. What is the trust's taxable incom under the formula approach? (distribution deduction approach)(complex trusts) b. What is the trust's taxable income under the short-cut approach? (simple trust)