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If the trust accounting income is not sufficient to pay this amount, the trustee is empowered to invade corpus to the extent necessary. During the current year, the trust has distributable net income of $100,000, including $50,000 of taxexempt interest. In accordance with the trust instrument, $8,000 is paid to Tamara. How much income is taxable to Tamara for the current year? A. $4,000. B. $6,000. C. $8,000. D. $10,000. E. None of the above. ____ 198. Which of the following restrictions applies concerning distributions to trust beneficiaries? A. Special allocations of income types are allowed, assuming that they carry substantial economic effect.
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