Reference no: EM132529729

Question - Taylor, a cash-basis taxpayer, died on August 13. During the year, the estate's executor made a distribution of $125,000 from estate income to Taylor's sole heir and adopted a calendar year to determine the estate's taxable income.

The following additional information pertains to the estate's income and disbursements for the year:

Estate Income

Taxable interest $45,000

Net long-term capital gains allocable to corpus 10,000

Disbursements from the estate:

Administrative expenses 12,000

Charitable contributions per will requirements 8,000

Required - For the calendar year, what was the estate's distributable net income (DNI)?

a. $35,000.

b. $37,000.

c. $47,000.

d. $25,000.