A Trust Has Net Accounting Income and Distributable Net Income

question 99

Multiple Choice

A trust has net accounting income and distributable net income (DNI) of $60,000, all from taxable sources. The trustee is required to distribute $40,000 of current income to Harry. In addition, the trustee makes a discretionary distribution to Harry of $10,000 and a discretionary distribution to Susan of $30,000. $20,000 of the $40,000 total discretionary distributions is from corpus. Gross income reportable by Harry is

• A)$50,000.
• B)$45,000.
• C)$37,500.
• D)$30,000.

---

Definitions:

Animals

Multicellular, eukaryotic organisms in the kingdom Animalia that are capable of locomotion and responsive to their environment.

Epidemiology

The study of how often diseases occur in different groups of people and why, aimed at controlling health problems.

Diagnosis

The identification of the nature of an illness or other problem by examination of the symptoms.

Anxiety Disorders

A group of psychological disorders marked by heightened levels of fear, anxiety, and associated behavioral issues.