1) The trust’s final tax termination year ends on June 30. The trust realized $5,000 on capital gain on May 1. The capital gain income a. will be…

2)  A pro-rata portion of estate/trust deductions

a.      need not be allocated to tax exempt income.

b.      is allocated to tax exempt income to the extent any amount of the deductions remains after allocation to taxable income.

c.      must be allocated to tax exempt income but only to the extent the deductions consist of fiduciary/attorney fees.

d.      none of the above is correct.