Determination of distribution deduction

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Question - Determination of Distribution Deduction. A trust has net accounting income of $24,000 and incurs a trustee fee of $1,000 in its principal account. What is its distribution deduction under the following situations:

a. It distributes $24,000, and all of its income is from taxable sources.

b. It distributes $24,000 and it has tax exempt income (net of allocable expense of $2,000.

C. It distributes $10,000 and all of its income is from taxable sources.

Reference no: EM132050439

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