The trustee of the Spratt Trust has the discretion to distribute the income or corpus of the trust in any proportion between the two beneficiaries of the trust, Edwin and Dolly. Under the trust...


The trustee of the Spratt Trust has the discretion to distribute the income or corpus of the trust in any proportion between the two beneficiaries of the trust, Edwin and Dolly. Under the trust instrument, Edwin must receive $20,000 from the trust every year. In the current year, the trust's accounting income is $100,000, and its DNI is $90,000. In addition to the required $20,000, the trustee pays Edwin $30,000 and Dolly $50,000.


What amount income is recognized by the beneficiaries as the result of the distributions?



Round any division to three decimal place and use in subsequent computations. If an amount is zero, enter "0".



a.Edwin:   First-tier Distribution of $fill in the blank 1 and Second-tier Distribution of $fill in the blank 2.

b.Dolly:     First-tier Distribution of $fill in the blank 3 and Second-tier Distribution of $fill in the blank 4



Jun 10, 2022
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