In the Current Year, a Trust Has Distributable Net Income

question 94

Multiple Choice

In the current year, a trust has distributable net income (DNI) of $30,000. During the year, the trust makes a mandatory distribution to Sarah of $5,000 and a discretionary distribution of $10,000 to Kyle. The trust has no tax-exempt income. The distribution deduction of the trust is

• A)$30,000.
• B)$15,000.
• C)$10,000.
• D)$5,000.

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Definitions:

Self-discrepancy Theory

A psychological theory that explains how differences between individuals' actual, ideal, and ought selves can impact their emotional states.

Actual Self

The concept referring to how individuals see themselves currently.

Ought Selves

The representation of the attributes that someone believes they should possess, often influenced by societal, familial, and personal expectations.

Self-regulation

Refers to the ability of an individual to manage their emotions, thoughts, and behaviors in accordance with their goals.