Identify Which of the Following Statements Is True

question 46

Multiple Choice

Identify which of the following statements is true.

• A)The personal exemption available to a trust is adjusted annually based on changes in the consumer price index.
• B)Income received by a trust beneficiary has the same character it had at the trust level.
• C)Distributable net income (DNI)excludes tax-exempt income.
• D)All of the above are false.

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Definitions:

Mediator

A neutral third party who facilitates discussion between parties to a dispute to encourage and assist their coming to an agreement; sometimes referred to as a conciliator.

Agreement

A mutual understanding or arrangement between two or more parties, usually establishing a legal obligation.

Administrative Tribunals

Specialized dispute adjudication forums created by statute, that have been given quasi-judicial powers to resolve disputes and enforce legislation.

Legislative Branch

The division of government responsible for creating, amending, and repealing laws, often consisting of one or more houses or assemblies.