Problem $20-24($Algorithmic$)($LO$.2,3)$

The Allwardt Trust is a simple trust that correctly uses the calendar year for tax purposes. Its income beneficiaries $($Lucy and Ethel$)$ are entitled to the trust's annual accounting income in shares of one$-$half each.

For the current tax year, Allwardt reports the following.

Ordinary income$$660,000$Long$-$term capital gains, allocable to corpus$198,000$Legal and accounting fees, allocable to corpus$33,000$

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a$.$How much income is each beneficiary entitled to receive?

$fill in the blank $2$d$7$fd$2009$fde$040\_1$

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A critical value that is used in computing the amount of the entity's distribution deduction is distributable net income $($DNI$).$ As it is defined in Subchapter J$,$ DNI serves several functions.

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b$.$What is the trust's DNI?

$fill in the blank $9$c$0$c$3000$bf$90$fc$5\_1$

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Incorrect

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c$.$What is the trust's taxable income?

$fill in the blank $1$e$791$af$53$fb$0$f$81\_1$

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Incorrect

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d$.$How much gross income is reported by each of the beneficiaries?

$fill in the blank d$3$e$6$a$804$c$00$df$9$a$\_1$

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Incorrect

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Incorrect