The Gomez Trust is required to distribute $80,000 annually, split equally between its two income beneficiaries, Lara and Byron. If trust income is not sufficient to pay these amounts, the trustee can invade corpus to the extent necessary. During the current year, the trust has DNI of $60,000. Byron receives an additional $30,000 discretionary corpus distribution.

a. How much of the $40,000 distributed to Lara is included in her gross income?

b. How much of the $70,000 distributed to Byron is included in his gross income?

c. How much of these distributions are first-tier distributions or second-tier distributions?