Which of the following taxpayers use a Schedule K and K-1 to pass through income, loss, and credit amounts to the owners or beneficiaries? A. Complex trust. B. Partnership. C. S corporation. D. All of these. E. None of the above.

For the year, the Brighton Trust has distributable net income of $100,000 and no income from tax- exempt sources. Under the terms of the trust instrument, the trustee is required to distribute $25,000 to Roger and $50,000 to Sally. After payment of these amounts, the trustee can make additional distributions at its discretion. Exercising this authority, the Brighton trustee distributes an additional $20,000 to Roger, and $30,000 to Sally. How much income from the trust must Sally recognize? A. $80,000 B. $65,000 C. $50,000 D. $30,000 E. None of the above.