Determination of Taxable Income and Tax Liability. A simple trust has the following receipts and expenditures for 2018. The trust instrument is silent with respect to capital gains, and state law concerning trust accounting income follows the Uniform Act. Assume the trustees fee is charged equally to income and to principal. Corporate bond interest $40,000

Tax-exempt interest 9,000

Long-term capital gain 5,000 Trustees fee 2,000

Distribution to beneficiary 48,000 a. What is the trusts taxable income?

b. What is the trusts tax liability?