Identify Which of the Following Statements Is True

question 34

Multiple Choice

Identify which of the following statements is true.

• A)Beneficiaries of simple trusts are taxed currently on their pro rata share of taxable distributable net income (DNI)regardless of the actual amount distributed to them during the period.
• B)The income received by the beneficiaries of the trust loses its character once it is distributed.
• C)Capital losses remaining in the final year of a trust do not pass through to the beneficiaries succeeding to the trust property.
• D)All of the above are false.

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Definitions:

Point-of-sale Terminal

An electronic device used to process sales transactions at retail locations, accepting payment from customers in various forms.

Voice Recognition

A technology that identifies and interprets human speech, allowing computers and devices to accept and execute voice commands.

Memory Capacity

The amount of data or information that can be stored in a device's memory system.

KB

Kilobyte, a unit of digital information storage equal to 1,024 bytes.