A Trust Has Distributable Net Income (DNI)of $50,000, Including $30,000

question 74

Essay

A trust has distributable net income (DNI)of $50,000, including $30,000 tax-exempt interest income and $20,000 taxable interest income. The trust instrument requires that all income be distributed at least annually, 30% to Jane and 70% to Joe. What is the amount and character of the income that Jane receives?

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