Apple Trust Reports Net Accounting Income of $40,000, All from Taxable

question 4

Multiple Choice

Apple Trust reports net accounting income of $40,000, all from taxable sources. The trustee is required to distribute $15,000 annually to Megan. The trustee also makes discretionary distributions of $30,000, $7,500 to Megan and $22,500 to Caroline. The trust pays $5,000 of the discretionary distributions from corpus. What is the taxable amount of the Megan's tier-2 distribution?

• A)$7,500
• B)$6,250
• C)$15,000
• D)$22,500

---

Definitions:

Priority Action

The most important or urgent task that needs to be performed first in a sequence of actions, especially in critical situations.

Open Wound

A breach in the skin or a disruption of the normal structure and function of the skin.

Data Validation

The process of ensuring that a program operates on clean, correct, and useful data by checking for accuracy and quality of the data.

Independent Nursing

Nursing care provided by nurses who operate independently of direct supervision or command, often in contexts like primary health care or community health.