Review the following situations:

a.	It distributes $20,000, and all of its income is from taxable sources.
b.	It distributes $20,000, and it has tax-exempt income (net of allocable expenses) of $1,300.
c.	It distributes $13,000, and all of its income is from taxable sources.

Requirement

What is its distribution deduction under each of the situations?

Situation	Distribution deduction
a. It distributes $20,000, and all of its income is from taxable sources.
b. It distributes $20,000, and it has tax-exempt income (net of allocable expenses) of $1,300.
c. It distributes $13,000, and all of its income is from taxable sources.