The Bildge Trust is a simple trust. Crawford is its sole beneficiary. In the current year, the trust earns $40,000 in taxable interest and $100,000 in tax-exempt interest. In addition, the trust recognizes a $4,800 long-term capital gain. The trustee charges a fee of $25,000 for the year.

a. Compute trust accounting income, where the trust agreement allocates fees and capital gains to corpus.

b. Compute trust accounting income, where the trust agreement allocates fees to income.