A Trust Has Net Accounting Income and Distributable Net Income

question 99

Multiple Choice

A trust has net accounting income and distributable net income (DNI) of $60,000, all from taxable sources. The trustee is required to distribute $40,000 of current income to Harry. In addition, the trustee makes a discretionary distribution to Harry of $10,000 and a discretionary distribution to Susan of $30,000. $20,000 of the $40,000 total discretionary distributions is from corpus. Gross income reportable by Harry is

• A)$50,000.
• B)$45,000.
• C)$37,500.
• D)$30,000.

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Definitions:

Apples

A type of fruit known for its sweet taste and crisp texture, widely consumed fresh, juiced, or used in various culinary dishes.

Oranges

A citrus fruit known for its sweet or slightly acidic flavor, commonly consumed fresh or as juice.

Consumptions

The act of using goods and services for personal use, including the spending on such goods and services in an economy.

Apples

A fruit produced by an apple tree, widely consumed and cultivated globally for its sweetness and variety of uses.