The Twist Trust has generated $60,000 in depreciation deductions for the year. Its accounting income is $75,000. In computing this amount, pursuant to the trust document, depreciation was allocated to corpus. Accounting income was distributed at the trustee's discretion: $25,000 to Hernandez and $50,000 to Jackson.
a. Compute the depreciation deductions that Hernandez, Jackson, and Twist may claim.
b. Same as (a), except that depreciation was allocated to income.
c. Same as (a), except that the trustee distributed $15,000 each to Hernandez and to Jackson and retained the remaining accounting income.
d. Same as (a), except that Twist is an estate (and not a trust).