A trust whose assets are stocks and bonds generates $13,000 of distributable net income (DNI) during its current taxable year; $2,500 of this amount is tax-exempt interest on municipal bonds, while the remaining amount is made up of dividends.According to the trust instrument, the trustee may make discretionary distributions of trust income; during the current year $1,000 is distributed to beneficiary B.The distribution made by the trust entitles the trust to a deduction of

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The Answer of A trust whose assets are stocks and bonds generates $13,000 of distributable net income (DNI) during its current taxable year; $2,500 of this amount is tax-exempt interest on municipal bonds, while the remaining amount is made up of dividends.According to the trust instrument, the trustee may make discretionary distributions of trust income; during the current year $1,000 is distributed to beneficiary B.The distribution made by the trust entitles the trust to a deduction of

A Trust Whose Assets Are Stocks and Bonds Generates $13,000