The Kilp Sisters Trust is required to distribute $60,000 annually equally to its two income beneficiaries, Clare and Renee. 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 generates only taxable interest income and records DNI of $160,000; the trustee distributes $30,000 to Clare and $150,000 to Renee.

Question a. Are these distributions first-tier or second-tier distributions?

The distributions which are composed of trust accounting income that is required to be distributed currently come are Fill in the blank. In this case, that amount would be $fill in the blank, paid one-half each to Renee and Clare. In addition, Renee receives $fill in the blank in Taxable or Tax-free payments in excess of DNI.

Question b. How much of the $150,000 distributed to Renee is included in her gross income? $fill in the blank

Question c. How much of the $30,000 distributed to Clare is included in her gross income? $fill in the blank