The Treyson Trust, a simple trust, has the receipts and expenditures listed below for the current year. Assume the Uniform Act governs an item's classification as principal or income. The trustee's fee is charged one-half to principal and one-half to income.

Dividends

$18,000

Interest on tax-exempt bonds

8,000

Loss on sale of capital asset

(13,000)

Rental income from land

5,000

Property taxes on rental property

2,000

Trustee's fee

600

Requirement

What is the trust's net accounting income and the maximum amount it can distribute? Assume the trust instrument precludes distributing principal currently.

Begin by completing the table below to determine the trust's net accounting income for the year. (Complete all input fields. Enter a "0" if an item is not included in the computation of the trust's net accounting income. Use a minus sign or parentheses to enter items that reduce the trust's net accounting income.)

Dividends
Interest on tax-exempt bonds
Loss on sale of capital asset
Rental income from land
Property taxes on rental property
Trustee's fee
Net accounting income