1. The Allwardt Trust is a simple trust that correctly uses the calendar year for tax purposes. Its income beneficiaries (Lucy and Ethel) are entitled to the trust's annual accounting income in shares of one-half each.

   For the current tax year, Allwardt reports the following.

   Ordinary income	$795,000
   Long-term capital gains, allocable to corpus	238,500
   Legal and accounting fees, allocable to corpus	39,750

   a. How much income is each beneficiary entitled to receive? $

   b. What is the trust's DNI? $

2. c. What is the trust's taxable income? $

   d. How much gross income is reported by each of the beneficiaries? $