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:

Unique Needs

Specific requirements or preferences that vary among individuals or groups.

Bona Fide Occupational Requirements

Legitimate requirements for a job that are necessary for its performance, even if they exclude certain individuals.

Discriminate

To unjustly differentiate or make distinctions among individuals or groups, often based on characteristics such as race, gender, age, or sexuality.

Visible Minorities

Individuals of a specific ethnic or racial background that is different from the majority population.