Joes estate consists of $500,000. His will makes the following bequests: $10,000 to his sister Sally, $20,000 to his nephew Alex and the rest of his estate to his mother Carolyn. During the first year of the administration of his estate, his estate has earned $50,000 in income. Upon closing of the estate that same year, his executor makes the specific bequests to Sally and Alex, and distributes all remaining assets to Carolyn.

Explain the concept of DNI, and comment as to the validity of the following statement(s) and/or answer question(s):

1. Alex will have to claim the $20,000 as income as it was a distribution from the estate and the estate had $50,000 of income.
2. Carolyn receives a distribution of $520,000. How much of that will be taxable income?