Identify Which of the Following Statements Is False

question 28

Multiple Choice

Identify which of the following statements is false.

• A)The personal exemption for a trust provides a tax savings when some income is allocated to principal.
• B)Distributable net income (DNI)sets the ceiling on the amount of distributions taxed to the beneficiaries.
• C)A complex trust must distribute all its income annually.
• D)The beneficiaries of a simple trust are taxed on their share of DNI irrespective of the amount they receive.

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Definitions:

Merit

A system of recognizing or rewarding individuals based on their performance, abilities, or achievements.

Seniority

The concept of giving priority to employees who have worked longer for an organization, often affecting decisions around promotions, layoffs, and benefits.

Exempt From Overtime

Classification of employees who are not entitled to extra pay for hours worked beyond the standard workweek, due to their job nature.

Employment Standards Acts

Legislation that defines the minimum standards for wages, working conditions, and other employment practices, varying by jurisdiction.