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Please answer: Assuming distributions to beneficiaries in Year 3 are $42,000, what is the income distribution deduction? Part 1 of the problem is attached below
Please answer:
Assuming distributions to beneficiaries in Year 3 are $42,000, what is the income distribution deduction? |
Part 1 of the problem is attached below for purposes of relevance and has been answered previously. In Year 3, The YumTrust, a complex trust had various items of income and expense as indicated below. For each item below, please indicate how much, if any, should be included in the calculation of distributable net income for Year 3.
Item Amount in DNI
- Corporate Bond interest received, $700.
- Municipal Bond interest received, $400.
- A stock that was purchased 2 years ago for $2,100 was sold for $6,100.
- Rental Income of $4,500.
- Rental Expense of $1,100
- Trustee fee, $2,000 allocated 70% to principal and 30% to income.
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