Refer to Problem 14-30. How would your answer to Part a change if the trust in addition received $8,000 interest from tax-exempt bonds, and it distributed $28,000 instead of $20,000?
In problem 14-30
A simple trust has the following receipts and expenditures for the current year. The trust instrument classifies gains, losses, and trustee’s fees as part of principal.
Dividends …………………………………. $20,000
Long-term capital gain ……………………. 15,000
Trustee’s fees ……………………………… 1,500
Distribution to beneficiary ………………… 20,000