The James Henry living trust is a non-grantor trust with a single beneficiary Felipe this year the trust had distributor of net income of $11,000 after the allocation of the Doug deductions the totals include the following amounts, net rental income, $9000 and tax exempt interest of $2000
Felipe‘s 2023 distribution was $4000 how much of Felipe’s distribution will be treated as tax exempt interest
A. $0
B. $727
C. $889,
D. $2000