Apple Trust Reports Net Accounting Income of $40,000, All from Taxable

question 1

Multiple Choice

Apple Trust reports net accounting income of $40,000, all from taxable sources. The trustee is required to distribute $15,000 annually to Megan. The trustee also makes discretionary distributions of $30,000, $7,500 to Megan and $22,500 to Caroline. The trust pays $5,000 of the discretionary distributions from corpus. What is the amount of the distribution deduction?

• A)$40,000
• B)$45,000
• C)$15,000
• D)$30,000

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Definitions:

Left Lung

The smaller of the two lungs in the human body, consisting of two lobes, to accommodate the heart's position on the left side.

Lobes

Divisions or sections of an organ, separated by fissures or connective tissue, often found in the brain, lungs, and liver.

Pharynx

A muscular tube that serves as a pathway for both air (to the larynx) and food (to the esophagus), playing a role in the respiratory and digestive systems.

Oropharynx

The part of the throat at the back of the mouth behind the oral cavity, including the tonsils.