Problem 20-26 (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$630,000Long-term capital gains, allocable to corpus189,000Trustee commission expense, allocable to corpus31,500

a.Each beneficiary is entitled to receive income of $.

b.The trust's DNI is $.

c.The trust's taxable income is $.

d.Each of the beneficiaries can report $of gross income.