In the Current Taxable Year, Trust XYZ Had Fully Taxable

In the current taxable year, Trust XYZ had fully taxable DNI of $100,000.Under the terms of the trust instrument, the trustee was required to make a $60,000 income distribution to beneficiary X.In addition, the trustee made discretionary cash distributions in the current taxable year of $20,000 each to beneficiaries X, Y, and Z.Based on these facts,

A) X should report taxable income of $66,667; Y and Z should each report taxable income of $16,667.
B) X should report taxable income of $80,000; Y and Z should each report taxable income of $10,000.
C) X should report taxable income of $73,333; Y and Z should each report taxable income of $13,333.
D) All distributions are fully taxable to X, Y, and Z.