The Eagleton Trust generated distributable net income (DNI)this year of $120,000,one-third of which was portfolio income,and the balance of which was exempt interest.Under the terms of the trust,Clara Eagleton is to receive an annual income distribution of $40,000.At the discretion of the trustee,additional distributions can be made to Clara or to Clark Eagleton III.This year,the trustee's distributions to Clara totaled $60,000.Clark also received $60,000.How much of the trust's DNI is assigned to Clara?

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The trust generated $120,000 of DNI, of which one-third (or $40,000) is portfolio income and the remaining $80,000 is exempt interest. Clara is entitled to receive $40,000 of annual income distribution. The trustee distributed $60,000 to Clara and $60,000 to Clark, totaling to $120,000, which is the total DNI generated by the trust. Therefore, all of the trust's DNI assigned to Clara is $60,000 (the amount distributed to her).

The Eagleton Trust Generated Distributable Net Income (DNI)this Year of $120,000,one-Third