Victory is a simple trust that uses the calendar year for tax purposes Accounting income is required to be distributed equally to its four income beneficiaries For the current calendar year, the trust incurs the following Ordinary taxable business income of $60,000Tax exempt interest income $20,000Long term capital gain of $16,000 (allocable to corpus)Trustee commission expense of $6,000 (allocable to corpus)Use the following partially completed worksheet to answer the questions below You can't type into this worksheet, but you can use it as a guide since some of the information has been provided for you ItemTotalsAccounting IncomeTaxable IncomeDistributable Net Income Distribution DeductionOrdinary Income60000Tax exempt inc20000LTCG corpus16000Fiduciary Fees (alloc based on taxable exempt income)(6000)(4500)Exemption Acctg inc TI before distrib deducStep 1Step 271200ExemptionLTCGExempt income (Total less amount alloc to exempt income)Distributable Net IncomeDistribution Deduction (DNI reduced by exempt)Step 3Entity taxable incomeStep 4Answer the following questions, using the partially completed format above to help you ENTER WHOLE DOLLAR ANSWERS ONLY, NO DECIMALS, NO COMMAS a How much income is paid distributed to the beneficiaries in total b How much of the commission expense is allocated to exempt income for purposes of computing the DNI c What is the trusts DNI d What is the amount of income taxed to the trust, the trusts taxable income, after the distribution deduction Remember, exempt income, net of allocated fees, is not taxable e How much is the total taxed to the beneficiaries f What is the total amount of trust income taxed, beneficiaries and trust combined

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Victory is a simple trust that uses the calendar year for tax purposes. Accounting income is required to be distributed equally to its four income

Victory is a simple trust that uses the calendar year for tax purposes. Accounting income is required to be distributed equally to its four income beneficiaries.For the current calendar year, the trust incurs the following:Ordinary taxable business income of $60,000Tax exempt interest income $20,000Long-term capital gain of $16,000 (allocable to corpus)Trustee commission expense of $6,000 (allocable to corpus)Use the following partially completed worksheet to answer the questions below. You can't type into this worksheet, but you can use it as a guide since some of the information has been provided for you.ItemTotalsAccounting IncomeTaxable IncomeDistributable Net Income / Distribution DeductionOrdinary Income60000Tax-exempt inc20000LTCG – corpus16000Fiduciary Fees (alloc based on taxable & exempt income)(6000)(4500)Exemption?Acctg inc/TI before distrib deducStep 1Step 271200ExemptionLTCGExempt income (Total less amount alloc to exempt income)Distributable Net IncomeDistribution Deduction (DNI reduced by exempt)Step 3Entity taxable incomeStep 4Answer the following questions, using the partially completed format above to help you.ENTER WHOLE DOLLAR ANSWERS ONLY, NO DECIMALS, NO COMMAS!a. How much income is paid/distributed to the beneficiaries in total?b. How much of the commission expense is allocated to exempt income for purposes of computing the DNI?c. What is the trust’s DNI?d. What is the amount of income taxed to the trust, the trust’s taxable income, after the distribution deduction? Remember, exempt income, net of allocated fees, is not taxable!e. How much is the total taxed to the beneficiaries?f. What is the total amount of trust income taxed, beneficiaries and trust combined?