Prepare the 2011 fiduciary income tax return (Form 1041) for the Blue Trust.

Prepare the 2011 fiduciary income tax return (Form 1041) for the Blue Trust. In addition, determine the amount and character of the income and expense items that each benefici- ary must report for 2011 and prepare a Schedule K–1 for Betty Blue. Omit all alternative minimum tax computations. The 2011 activities of the trust include the following. Dividend income, all U.S. stocks $50,000 Taxable interest income 30,000 Tax-exempt interest income 10,000 Fiduciary’s fees 6,000 The trust and Betty both use the calendar tax year. Under the terms of the trust instru- ment, fiduciary’s fees are allocated to income. The trustee must distribute all of the entity’s accounting income to Betty Blue by February 15 of the following year. The trustee followed th