This Year, the Suarez Trust Generated Distributable Net Income (DNI)

Multiple Choice

This year, the Suarez Trust generated distributable net income (DNI) of $150,000, two-thirds of which was portfolio income, and the balance of which was exempt interest. Under the terms of the trust, Clara Suarez is to receive an annual income distribution of $30,000. At the discretion of the trustee, additional distributions can be made to Clara, or to Clark Suarez III. This year, the trustee's distributions to Clara totaled $60,000. Clark received $90,000. How much of the trust's DNI is assigned to Clark?

A) $0, only first-tier distributions are subject to Federal income tax.
B) $60,000
C) $75,000
D) $90,000