The Edgerton Estate generated Distributable Net Income this year of $100,000, one- half of which was tax-exempt interest, and the balance of which was long-term capital gain. Kyle Edgerton, the sole income beneficiary of the Estate, received a distribution of the entire $150,000 fiduciary income of the entity. How does Kyle account for this distribution? a. $150,000 ordinary income --19. b. c. $75,000 long-term capital gain, $75,000 exempt interest $100,000 ordinary income d. $66,667 long-term capital gain, $33,333 exempt interest e $50,000 long-term capital gain, $50,000 exempt interest The Eagleton Trust generated Distributable Net Income this year of $100,000, one- third of which was portfolio 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. At the discretion of the trustee, additional income distributions can be made to Clara, or to Clark Eagleton III. This year, the trustee's distributions to Clara totaled $70,000. Clark received $30,000. How much of the trust's distributable net income is assigned to Clara? a. $100,000, under the "majority of income" rule b. $70,000 c. $50,000 d. $30,000 e. $O 20. The Eagleton Trust generated Distributable Net Income this year of $100,000, one- third of which was portfolio 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. At the discretion of the trustee, additional income distributions can be made to Clara, or to Clark Eagleton IlI. This year, the trustee's distributions to Clara totaled $70,000. Clark received $60,000. How much of the trust's distributable net income is assigned to Clark? a. $100,000, under the "generation-skip" rule b. $60,000 C. $46,154 d. $40,000 21. $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. Lacking any election by the trustee, Telly's basis in the asset is $10,000 b. Lckng any election by the trustee, Telly's basis in the asset is stepped up to $30,000 c. ngany e b te trustee, the trust recognizes $20,000 gross income d. Assuming that the trustee made an election under IRC 643(e), the trust is the distribution 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 e
