Problem 28-22 (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	$735,000
Long-term capital gains, allocable to corpus	220,500
Legal and accounting fees, allocable to corpus	36,750

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a. How much income is each beneficiary entitled to receive? $fill in the blank b9fbb400f07602d_1

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b. What is the trust's DNI? $fill in the blank a7bb5ffcbfc8009_1

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c. What is the trust's taxable income? $fill in the blank 1a95fcfe8001fc4_1

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d. How much gross income is reported by each of the beneficiaries? $fill in the blank d61697f8dfd5faf_1