Questions 20- 22:

-- 20. . a. d. e. The Eagleton Trust generated Distributeble Net Income this year of $100,000, one- third of which was portfollo income, and the balance of which was exempt interest. Under the terms of the trust, Clara Eagloton is to receive an annual income distribution of $40,000. At the discretion of the truslee, additional Income distributions can be made to Clara, or to Clark Eagleton !l. This year, the trustee's distributions to Clara totaled $70,000. Clark received $30,000. How much of the trust's distributable nel Income is assigned to Clara? $100,000, under the majority of Income" rule b. $70,000 $60,000 $30,000 $0 The Eagleton Trust generated Distributable Net Income this year of $100,000, one- third of which was portfollo Income, and the balance of which was exempt interest. Under the terms of the trust, Clara Eagleton is to receive an annual Income distribution of $40,000. Al the discretion of the trustee, additional Income distributions can be made to Clara, or to Clark Eagleton lil. This year, the trustee's distributions to Clare totaled $70,000. Clark received $60,000. How much of the trust's distributable net Income le assigned to Clark? $100,000, under the "generation-skip" rule b. $60,000 $46,164 $40,000 21. - d. $0 - 22 The trustee of the Epsilon Trust distributed an asset to Telly, a qualifying Income beneficiary. The asset's basis to the trust was $10,000, and its fair market value on the distribution date was $30,000. Which of the following statements is true? a. Laoking any election by the trustee, Telly's basis in the asset is $10,000 b. Lacking any election by the trustee, Tellys basis In the asset is stepped up to $30,000 Lacking any election by the trustee, the trust recognizes $20.000 gross income on the distribution Assuming that the trustee made an election under IRC 643(e), the trust is allowed a $10,000 distribution deduction for this transaction Assuming that the trustee made an election under IRC 643(e), Telly recognizes $20,000 gross income on the distribution c. d. e. -- 20. . a. d. e. The Eagleton Trust generated Distributeble Net Income this year of $100,000, one- third of which was portfollo income, and the balance of which was exempt interest. Under the terms of the trust, Clara Eagloton is to receive an annual income distribution of $40,000. At the discretion of the truslee, additional Income distributions can be made to Clara, or to Clark Eagleton !l. This year, the trustee's distributions to Clara totaled $70,000. Clark received $30,000. How much of the trust's distributable nel Income is assigned to Clara? $100,000, under the majority of Income" rule b. $70,000 $60,000 $30,000 $0 The Eagleton Trust generated Distributable Net Income this year of $100,000, one- third of which was portfollo Income, and the balance of which was exempt interest. Under the terms of the trust, Clara Eagleton is to receive an annual Income distribution of $40,000. Al the discretion of the trustee, additional Income distributions can be made to Clara, or to Clark Eagleton lil. This year, the trustee's distributions to Clare totaled $70,000. Clark received $60,000. How much of the trust's distributable net Income le assigned to Clark? $100,000, under the "generation-skip" rule b. $60,000 $46,164 $40,000 21. - d. $0 - 22 The trustee of the Epsilon Trust distributed an asset to Telly, a qualifying Income beneficiary. The asset's basis to the trust was $10,000, and its fair market value on the distribution date was $30,000. Which of the following statements is true? a. Laoking any election by the trustee, Telly's basis in the asset is $10,000 b. Lacking any election by the trustee, Tellys basis In the asset is stepped up to $30,000 Lacking any election by the trustee, the trust recognizes $20.000 gross income on the distribution Assuming that the trustee made an election under IRC 643(e), the trust is allowed a $10,000 distribution deduction for this transaction Assuming that the trustee made an election under IRC 643(e), Telly recognizes $20,000 gross income on the distribution c. d. e