Peyton Trust, which is a simple trust, distributed $45,000 to its sole beneficiary, Brooke, in the current year Further, it had the following items of income and expense for the current year Interest income from municipal bonds $10,000 Gross income from rental properties 30,000 Operating expenses for the rental properties 5,000 Trust fees allocable to the rental properties 2,000 What is Peyton's income distribution deduction for the current year a $23,000 b $33,000 c $40,000 d $45,000

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Question: Peyton Trust, which is a simple trust, distributed $45,000 to its sole beneficiary, Brooke, in the current year. Further, it had the following items of

Peyton Trust, which is a simple trust, distributed $45,000 to its sole beneficiary, Brooke, in the current year. Further, it had the following items of income and expense for the current year.

Interest income from municipal bonds	$10,000
Gross income from rental properties	30,000
Operating expenses for the rental properties	5,000
Trust fees allocable to the rental properties	2,000

What is Peyton's income distribution deduction for the current year?

a.$23,000

b.$33,000

c.$40,000

d.$45,000

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