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A trust has $7,000 in interest income, $5,000 in tax-exempt interest income, $4,000 in dividend...

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Accounting

A trust has $7,000 in interest income, $5,000 in tax-exempt interest income, $4,000 in dividend income and $3,000 in capital gains. The trust's only expense was $2,000 in fiduciary fees. What is the allocation of fiduciary fees to principal and income?

A)$0 allocable to principal; $2,000 allocable to income.

B)$400 allocable to principal; $1,600 allocable to income.

C)$1,600 allocable to principal; $400 allocable to income.

D)$2,000 allocable to principal; $0 allocable to income.

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