The Suarez Trust Generated Distributable Net Income (DNI) This Year

question 30

Multiple Choice

The Suarez Trust generated distributable net income (DNI) this year of $150,000, two-thirds of which was portfolio income, and the balance of which was exempt interest. Under the terms of the trust, Clara Suarez is to receive an annual income distribution of $30,000. At the discretion of the trustee, additional distributions can be made to Clara or to Clark Suarez III. This year, the trustee's distributions to Clara totaled $60,000. Clark received $90,000. How much of the trust's DNI is assigned to Clara?

• A) $75,000
• B) $60,000
• C) $45,000
• D) $30,000

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Definitions:

Antitrust Laws

Legislation enacted to prevent monopolies and promote competition among businesses, ensuring fair market practices.

Tying Contracts

Agreements where the sale of one product (the "tying" product) is conditioned on the purchase of another product (the "tied" product).

Clayton Act

An amendment passed to the U.S. antitrust laws to promote competition among enterprises and protect consumers from unfair business practices.

Clayton Act

A United States antitrust law, passed in 1914, aiming to prevent exclusive sales contracts, corporate mergers, and other practices that restrict competition.