A Trust Distributes 30% of Its Income to Mark and 20

question 49

Multiple Choice

A trust distributes 30% of its income to Mark and 20% to Nancy. The remaining 50% is accumulated. The trust's depreciation is $1,000. The trust instrument is silent regarding the depreciation deduction. State law requires the depreciation be charged to principal. What part of the depreciation deduction will be allocated to Mark?

• A)$0
• B)$200
• C)$300
• D)$1,000

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Definitions:

Adaptive Ways

Strategies or methods individuals develop to cope with the demands and challenges of their environment.

Epigenetic Principle

A concept in developmental psychology that proposes development is guided by an underlying plan, where each stage builds upon the previous one.

Maturation

The process by which individuals grow and develop physically, emotionally, and intellectually over time, largely due to genetic factors.

Freud's Theory

A set of psychoanalytic theories developed by Sigmund Freud, focusing on unconscious motivations and the role of childhood experiences.