Question

Lyon, a cash basis taxpayer, died on January 15 of the current year. During the current year, the estate executor made the required periodic distribution of $9,000 from estate income to Lyon's sole heir. The following information pertains to the estate's income and disbursements for the year. For the current calendar year, what was the estate's distributable net income (DNI)

Answer 1

the estate's distributable net income (DNI) is $15,000

Step-by-step explanation:

The computation of the estate's distributable net income (DNI) is given below

= Taxable interest income - administrative expense

= $20,000 - $5,000

= $15,000

Hence, the estate's distributable net income (DNI) is $15,000

The same should be considered and relevant