A simple trust has ordinary income of 56000 a longterm capit

A simple trust has ordinary income of $56,000, a long-term capital gain of $20,000 (allocable to corpus), and a trustee commission expense of $5,500 (payable from corpus). The two income beneficiaries, Woo and Jae, are entitled to the trust\'s annual accounting income, based on shares of 60% and 40%, respectively. Woo is allocated DNI of $________ and Jae is allocated DNI of $._________

Solution

(Figure in $) Item Totals Accouting Income Taxable Income Distributable Net Income/Distribution Deduction Ordinary income       56,000    56,000    56,000 Net long-term capital gain       20,000    20,000 Fiduciary fees       -5,500     -5,500 Personal exemption        -300 Accounting Income/Taxable Income Before the Distributions Deduction    56,000    70,200                              70,200 Exemption 300 Corpus Capital Gain/Loss                             -20,000 Distributable Net Income                              50,500 Distribution Deduction    50,500 Entity Taxable Income    19,700 Distributable Net Income Woo       30,300 Jae       20,200