Answer:
Woo is allocated DNI of $30,300 and Jae is allocated DNI of $20,200
Explanation:
Item Totals Accounting Taxable Distributable N.I.
Income Income /Deductions
Ordinary income 56,000 56,000 56,000
Net long-term capital 20,000 20,000
gain
Fiduciary fees -5,500 -5,500
Personal exemption -300
Accounting Income/ Taxable 56,000 70,200 70,200
Income before the Distributions
Deduction
Exemption 300
Corpus Capital Gain/Loss -20,000
Distributable Net Income 50,500
Distribution Deduction 50,500
Entity Taxable Income 19,700
Distributable Net Income
Woo allocated DNI = 50,500 * 60% = $30,300
Jae allocated DNI = 50,500 * 40% = $20,200
