A trust has the following results: $$\begin{array} { l | l }
\text { Net tax-exempt interest } & \$ 10,000 \
\hline \text { Net accounting income } & 64,000 \
\hline \text { Trustee fees charged to corpus } & 2,000
\end{array}$$ The Uniform Act is followed. The trust document requires one- fifth of the income to be distributed annually to David and the remainder of the income to Patty. What is distributable net income?

Question

A trust has the following results: $$\begin{array} { l | l } 
\text { Net tax-exempt interest } & \$ 10,000 \
\hline \text { Net accounting income } & 64,000 \
\hline \text { Trustee fees charged to corpus } & 2,000
\end{array}$$ The Uniform Act is followed. The trust document requires one- fifth of the income to be distributed annually to David and the remainder of the income to Patty. What is distributable net income?

Quizplus · Accepted Answer

Distributable net income (DNI) is calculated by subtracting trustee fees charged to corpus from net accounting income. Therefore, DNI = $64,000 - $2,000 = $62,000.

A Trust Has the Following Results The Uniform Act Is Followed