Question

If a trust has income of $13,350 required to be distributed, other amounts paid or required to be distributed of $21,000, and tax-exempt interest income of $2,468, what is the income istribution deduction reported on schedule B (form 1041)? A. 10,882 B. 13, 350 C. 18,532 D. 21,000 * This question has been posted before, with an answer of $10,882. In the solution, the expert subtracted the tax-exempt interest he "assumed" was included in the $13,350, which I don't believe it was because it doesn't say it was. (If you follow Schedule B (1041), you would subtract it if it was included in Line 11.) Therefore, I believe the answer is $13,350. Please look at the instructions for Schedule B (1041) and the form itself and do the math. Please tell me what you come up with. Thank you.

          If a trust has income of $13,350 required to be distributed,
other amounts paid or required to be distributed of $21,000, and
tax-exempt interest income of $2,468, what is the income
istribution deduction reported on schedule B (form 1041)?
A. 10,882
B. 13, 350
C. 18,532
D. 21,000
* This question has been posted before, with an answer of
$10,882. In the solution, the expert subtracted the tax-exempt
interest he "assumed" was included in the $13,350, which I don't
believe it was because it doesn't say it was. (If you follow
Schedule B (1041), you would subtract it if it was included in Line
11.) Therefore, I believe the answer is $13,350. Please look at the
instructions for Schedule B (1041) and the form itself and do the
math. Please tell me what you come up with. Thank you.

Added by Benjamin J.

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