In 2003, Belinda Barclay established the Barclay Trust, an irrevocable trust, and named the local Bank as Trustee. She funded the trust with corporate and municipal bonds. The trustee is directed to distribution income and/or principal at its discretion to Belinda's adult sons, Joe and Rusty, for 15 years and then payout the remaining trust assets, including any accumulated income, equally between the two sons. Half of the trustee's fee is charged to principal and half to income. During the current year, the trustee distributed $15,000 to Joe and 10,000 to Rusty. Other current information for the trust for 2014 is as follows:
Corporation bond interest $15,000
Municipal bond interest 22,000
Long-term capital gain on sale of corporation bonds 14,000
CPA fee for prior year tax return 1,800
Trustee's fee 2,500
Estimated federal income taxes paid by the trust for 2014 7,700
The trust has a $1,000 short-term capital loss carryover from 2013
Compute the trust's taxable income before the distribution deduction, the distribution deduction, the taxable income, the tax payable by the trust, and income to be reported by Joe and Rusty.