Question - Panther Trust has net accounting income and distributable net income of $100,000, $75,000 from taxable sources and $25,000 from tax-exempt sources. During the year the trust makes a mandatory distribution to Julius and Steve of $50,000 each. How much of Steve's distribution is taxable?
a. $12,500
b. $25,000
c. $37,500
d. $50,000