The Doyle Trust reports distributable net income of $100,000 for the year and no income from tax-exempt sources. Under the terms of the trust instrument, the trustee must distribute $30,000 to Roger and $30,000 to Sally. After payment of these amounts, the trustee can make additional distributions at its discretion. Exercising this authority, the trustee distributes an additional $25,000 to Roger and $25,000 to Sally. How much income from the trust must Sally recognize? $55,000. $30,000. $50,000. $25,000.
The Doyle Trust reports distributable net income of $100,000 for the year and no income from tax-exempt sources. Under the terms of the trust instrument, the trustee must distribute $30,000 to Roger and $30,000 to Sally. After payment of these amounts, the trustee can make additional distributions at its discretion. Exercising this authority, the trustee distributes an additional $25,000 to Roger and $25,000 to Sally. How much income from the trust must Sally recognize? $55,000. $30,000. $50,000. $25,000.
Chapter20: Income Taxation Of Trusts And Estates
Section: Chapter Questions
Problem 28P
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Transcribed Image Text:The Doyle Trust reports distributable net income of $100,000 for the year and no income from tax-exempt sources.
Under the terms of the trust instrument, the trustee must distribute $30,000 to Roger and $30,000 to Sally. After
payment of these amounts, the trustee can make additional distributions at its discretion. Exercising this authority, the
trustee distributes an additional $25,000 to Roger and $25,000 to Sally. How much income from the trust must Sally
recognize?
$55,000.
$30,000.
$50,000.
$25,000.
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