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The Prasad Trust Operates a Welding Business

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The Prasad Trust operates a welding business.Its current-year cost recovery deductions properly amount to $75,000.Prasad's accounting income was $100,000,of which $40,000 was distributed to first-tier beneficiary Chuck,$35,000 was distributed to second-tier beneficiary Ruby,and $25,000 was accumulated by the trustee.Ruby also received a $25,000 corpus distribution.Prasad's DNI was $80,000.Identify the treatment of Prasad's cost recovery deductions.


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