Panther Trust Has Net Accounting Income and Distributable Net Income

question 56

Multiple Choice

Panther Trust has net accounting income and distributable net income of $100,000, $75,000 from taxable sources and $25,000 from tax-exempt sources. During the year, the trust makes a mandatory distribution to Julius and Steve of $50,000 each. The distribution deduction is

• A)$25,000.
• B)$50,000.
• C)$75,000.
• D)$100,000.