Question

The trustee of the Pieper Trust can distribute any amount of accounting income and corpus to the trust’s beneficiaries, Lydia and Kent. This year, the trust incurred the following.
Taxable interest income ........... $40,000
Tax-exempt interest income ............ 20,000
Long-term capital gains—allocable to corpus ..... 80,000
Fiduciary’s fees—allocable to corpus ......... 9,000
The trustee distributed $26,000 to Lydia and $13,000 to Kent.
a. What is Pieper’s trust accounting income?
b. What is Pieper’s DNI?
c. What is Pieper’s taxable income?
d. What amounts are taxed to each of the beneficiaries?


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  • CreatedSeptember 09, 2015
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