Lorraine created a trust by transferring $500,000 of stock and bonds into it on January 1, year 1. The trust is to provide her mother with income for her lifetime, with the remainder interest going to Lorraine’s son. Lorraine retained the power to revoke both the income interest and the remainder interest. Who is taxed on the trust’s year 1 income?
a. Lorraine’s son
b. Lorraine’s mother
c. Lorraine
d. The trust