John transfers investment securities worth $200,000 with a tax basis of $130,000 to a trust, naming himself as trustee. The terms of the trust agreement require the trustee to pay all dividends and interest to John's brother, Dale. John has the right to revoke the trust at any time and take back title to the securities. During the trust's first year, John, as trustee, distributes $20,000 in dividends and $10,000 interest from the securities to Dale. None of the income was tax exempt. In a Word Document, respond to the following questions using 2016 tax regulations:

a) How much gross income does Dale recognize from the payments? Show your calculations.

b) How much gross income does John recognize from the above? Show your calculations.