If a State Has Adopted the Revised Uniform Principal and Income

question 76

Multiple Choice

If a state has adopted the Revised Uniform Principal and Income Act, which of the following statements is correct?

• A)The state law definition of trust income will preempt any other definitions.
• B)The definition of trust income in the trust document will preempt all other definitions.
• C)Under state law, tax-exempt interest will not be allocated to income.
• D)The definition of principal in the trust document must classify capital gains as principal.

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Definitions:

Invoice

A document from a seller requesting payment from the buyer; the supplier’s bill.

Mexican Peso

The currency of Mexico, symbolized as MXN, and used in financial transactions within the country.

U.S. Dollars

The official currency of the United States, widely used in international transactions.

Currency Exchange Rates

The rate at which one currency can be exchanged for another.