See the instructions for Schedule K-1 (Form 1041) (page 39):
https://www.irs.gov/pub/irs-pdf/i1041.pdf
As tagteam said, a Schedule K-1 must be prepared to report each beneficiary's share of deductions, credit or taxable income, and a copy must sent to each of these beneficiaries. The size of the distribution is irrelevant. Distributions of estate assets (as opposed to income received by the estate) are not reported anywhere on the estate income tax return.
Also read the instructions for Schedule B (Form 1041) regarding Distributable Net Income. The total of the distributed income shown on Schedules K-1 must agree with the calculations on Schedule B.
