Refer to the facts in Problem 32. How much of the $10,000 income distribution will be taxable to the beneficiary?

Problem 32

Refer to the facts in Problem 31. If a $10,000 distribution of income was made to a beneficiary during the 2019 tax year, what is the 2019 federal income tax liability of the estate? Assume that the decedent's will does not specify that the distribution is to be paid out of any specific type of income.

Problem 31

An estate receives the following items of income and has the following deductions during the tax year 2019:

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Income Dividends Taxable interest Tax-exempt interest Total income Deduction Fiduciary fee $5,000 5,000 5,000 $15,000 $2,000