Refer to Problem 14-35. How would your answer change if the trust instrument required that $10,000 per year be distributed to Sandy, and the trustee also made discretionary distributions of $60,000 to Roy and $30,000 to Sandy with separate shares not required?
In problem 14-35
A complex trust is authorized to make discretionary distributions of income and principal to its two beneficiaries, Roy and Sandy. Separate shares are not required. For the current year, it has DNI and net accounting income of $80,000, all from taxable sources. It distributes $60,000 to Roy and $40,000 to Sandy. How much gross income should each beneficiary report?