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:

Fluid-filled Sac

A structure encapsulated by membranes containing liquid, which can serve various biological functions in animals and plants.

Thylakoid Discs

Membrane-bound structures within chloroplasts where the light-dependent reactions of photosynthesis occur.

Granum

A stack of thylakoids within the chloroplasts of plant cells, crucial for the light reactions of photosynthesis.

Porphyrin Ring

A large, heterocyclic macrocycle composed of four modified pyrrole subunits interconnected via methine bridges, essential in the structure of heme groups and chlorophyll.