A simple trust had $25,000 in capital gains, $10,000 in municipal interest, $5,000 in corporate bond interest, and $2,000 in accounting and trustee fees. According to the trust agreement, capital gains are to be distributed to the beneficiary. What is the distributable net income for this trust?

A. $28,000
B. $30,000
C. $38,000
D. $40,000

Answer: C. $38,000

Business

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