Inheriting an IRA

My Dad died last year and he had an IRA that was given to my Mom as she was the beneficiary.  Prior to his death, he took a distribution from it.  She received a 1099R form for this distribution.  It lists the gross distribution and the taxable amount (same).  When I am answering the TurboTax questions, I enter the information from the 1099R and I get to the question about Did She Inherit This IRA.  I answered Yes.  Then the question comes up about where the funds went (into another IRA or not).  She transferred the IRA into another IRA in her name.  When I get to the Summary page of the income, it lists the distribution as non-taxable and I don't think this is correct.  What question am I answering incorrectly?  (As a side note, he took a distribution in 2015 too and in the Summary page of the income in the year over year comparison, this is listed under taxable).