John established a trust (worth exactly $1,000,000 at all times relevant here) for the benefit of Judith during her lifetime with the remainder to Lisa. Judith was 70 years old when the trust was established.ished. In addition to all income, Judith was given the noncumulative right to demand each year up to 8% of the trust's value (i.e., up to $80,000). For each of the following years, determine the taxable transfer that results from Judith's action or inaction. If the annual exclusion is applicable to Judith's taxable gift, use $14,000 for all years.

Question

1)In Year 1, Judith demanded and received $80,000, 8% of trust value, the full amount allowed - which of A-G below is the correct answer? pl show computation

2)In Year 2, Judith demanded and received $30,000, 3% of trust value - which of A-G below is the correct answer? pl show computation

3)In Year 3, Judith did not request and did not receive any distribution from the trust - which of A-G below is the correct answer? pl show computation

4)In Year 4, Judith died without having requested any distribution from the trust- which of A-G below is the correct answer? pl show computation

Potential answers

A.None of the other answers is correct

B.$0

C.$30,000

D.$50,000

E.$36,000

F.$80,000

G.$16,000

H.$66,000