Trust C, a simple trust, has taxable interest of $8,000, tax-exempt interest of $12,000, and a short-term capital gain of $16,000. The trust instrument provides that capital gains are allocable to corpus. There are two equal beneficiaries. How much gross income does each beneficiary have from Trust C?

A. $4,000
B. $6,000
C. $10,000
D. $12,000

Answer: A. $4,000

Business

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