A Trust Reports the Following Results The Trust Must Distribute All of Its Income Annually

question 27

Essay

A trust reports the following results:
$\begin{array}{lrr} & \text { Income } & \text { Principal } \\\text { Taxable bond interest } & \$ 20,000 & \\\text { Rental income } & 10,000 & \\\text { Gain on sale of investment land } & & 10,000 \\\text { Property taxes } & 2,000 & \\\text { Tristep fees } & & 500\end{array}$
The trust must distribute all of its income annually. Calculate taxable income after the distribution deduction.

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Definitions:

Carlisle School

A Native American boarding school in Pennsylvania established in 1879, aiming to assimilate Indigenous children into Euro-American culture, often through harsh methods.

Richard Pratt

A U.S. Army officer known for founding the Carlisle Indian Industrial School, noteworthy for his controversial "kill the Indian, save the man" approach to the assimilation of Native Americans into white culture.

Hampton Institute

A historically black university located in Hampton, Virginia, originally established to educate freed slaves and Native Americans.

Auburn Prison

A correctional facility in Auburn, New York, known for establishing the Auburn system, a model of prison discipline involving silent congregate labor.