1-  Trust T, a complex trust, has a calendar tax year. In year 1, suppose T has $10,000 of DNI and $20,000 of accounting income. on March 1 of year 2, suppose T distributes $15,000 to its beneficiaries. To what tax year does the distribution relate if T made no other distributions during year 1?(b) Suppose T was a simple trust?"

2- The Holt Trust has $50,000 of trust accounting income (TAI) and distributable net income (DNI) for the current year. The trust has three beneficiaries: Arthur, Betty and Carol. Under the terms of the trust instrument, Arthur is required to receive 20% of the trust accounting income. The trust instru-ment allows the trustee, in his discretion, to make additional distributions to all three beneficiaries. During the taxable year in question, the trustee makes discretionary distributions of $10,000 to Arthur, $60,000 to Betty and $30,000 to Carol. What is the total amount of taxable income taxable to each beneficiary? Please show your calculations and the reasoning for your answer.

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1 The distribution relates to Year 1 For a complex trust the distribution is allocated to the ... View the full answer