During the current year, a trust received $260,000 of taxable interest income, paid trustee's commissions of $60,000, and had no other income or expenses.The trust instrument requires that $70,000 be paid annually to Rachel, and $130,000 be paid annually to Courtney.How much income must Rachel and Courtney recognize for tax purposes?

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The trust instrument requires that Rachel receive $70,000 and Courtney receive $130,000, totaling $200,000. Since the trust had $260,000 of taxable interest income and $60,000 of trustee's commissions, the remaining amount of $200,000 must be distributed to Rachel and Courtney. Therefore, Rachel must recognize $70,000 and Courtney must recognize $130,000 for tax purposes.

During the Current Year, a Trust Received $260,000 of Taxable