Suzanne creates an irrevocable trust and funds it with $400, 000. The trustee is directed to distribute all of the trust income to her two children equally throughout their lifetimes. The trustee may also, in its discretion, distribute trust principal for the children's health, maintenance, and support. When the last child dies, the remaining trust property must be paid to Suzanne's grandchildren and the trust will end. If, in the first year of the trust, the trustee distributes all the income to the children as instructed but no principal, how will this trust be taxed? (a) Suzanne will be taxed on all of the trust income, since this is a Grantor Trust. (b) The trust is taxable as a simple trust, with a $300 exemption. (c) The trust is taxable as a complex trust, with a $100 exemption. (d) None of the trust income is taxed to anyone, since trusts are never taxable