34. Glen transferred corporate stock worth $300,000 with a tax basis of

$160,000 to an irrevocable trust. No gift taxes are paid. The terms of the trust require the independent trustee to distribute the trust income annually to Glen’s sister, Barbara. Any capital gain or loss is charged to trust corpus. Upon Barbara’s death, the trust corpus is to be distributed to Barbara’s children on a pro rata basis. During the first year of the trust, the trustee distributes $23,000 in dividend income to Barbara. The trust also has capital gains of $20,000.

a. What is the trust’s tax basis in the securities transferred to it by Glen?

b. Who is taxed on the dividend income?

c. Who is taxed on the capital gains?