Question

A simple trust has ordinary income of $56,000, a long-term capital gain of $20,000 (allocable to corpus), and a trustee commission expense of $5,500 (payable from corpus). The two income beneficiaries, Woo and Jae, are entitled to the trust's annual accounting income, based on shares of 60% and 40%, respectively. Woo is allocated DNI of $________ and Jae is allocated DNI of $._________

Answer 1

	(Figure in $)
Item	Totals	Accouting Income	Taxable Income	Distributable Net Income/Distribution Deduction
Ordinary income	56,000	56,000	56,000
Net long-term capital gain	20,000		20,000
Fiduciary fees	-5,500		-5,500
Personal exemption			-300
Accounting Income/Taxable Income Before the Distributions Deduction		56,000	70,200	70,200
Exemption				300
Corpus Capital Gain/Loss				-20,000
Distributable Net Income				50,500
Distribution Deduction			50,500
Entity Taxable Income			19,700
Distributable Net Income
Woo	30,300
Jae	20,200