Question 15:

USE THE FOLLOWING INFORMATION FOR PROBLEMS 9 THROUGH 16 An estate distributes an asset to its sole Income beneficiary. The distribution was not a speciflc bequest. The basis of the asset to the estate is $1,000, and the asset's far market value is $6,000. Distributable net Income of the estate is $9,500. No other distributions are made, nor was an election made by the fiduciary with respect to this distribution. - 16. a. b. If the fair market value of the property is $500, rather than $5,000, the estate's distribution deduction, and the beneficiary's taxable income, from the distribution is: $ 600. $1,000 $4,000. $6,000. $9,500 d. e