Identify Which of the Following Statements Is True

question 45

Multiple Choice

Identify which of the following statements is true.

• A)In a complex trust, distributable net income (DNI)does not act as a ceiling on the amount of the distribution deduction.
• B)Distributable net income (DNI)is not reduced by the charitable contribution deduction when calculating the deductible discretionary distributions for a complex trust.
• C)In a complex trust, distributable net income (DNI)is not reduced by the charitable contribution deduction when comparing DNI with the mandatory distributions in order to determine the amount of the distribution deduction.
• D)All of the above are false.

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Definitions:

Accountable

Being responsible or answerable for one's actions or decisions within an organizational or personal context.

Team Behaviors

Refers to the actions and attitudes members of a group exhibit while working together toward common goals.

Stimulates Participation

Encourages or promotes active involvement and contribution from individuals within a group or organization.

Priorities Clear

emphasizes the importance of establishing and understanding which tasks or goals are most essential and should be addressed first.