During the current year, a simple trust has the following receipts and expenditures. The Uniform Act governs the accounting classification.
Corporate bond interest ……………………… $60,000
Long-term capital gain ……………………… 20,000
Trustee’s fees ……………………………….. 3,000
a. What amount must be distributed to the beneficiary?
b. What is the trust’s taxable income under the shortcut approach?