Gregory Carson is a 25% income beneficiary of the John Carson trust. This year the trust reported the following income:

* $1500 taxable interest.

* $500 tax- exempt interest.

* $2000 qualified dividends.

Its only expense was $1000 in attorney fees. How much taxable interest will Gregory's Schedule K-1 report?

A. $500

B. $281

C. $268

* These are the only possible answers. Please choose one of them!!