Sally Transfers Property to a Revocable Trust

question 98

Multiple Choice

Sally transfers property to a revocable trust. Under the terms of the trust agreement, Allison is to receive income for ten years at which time the remainder is to go to Tom. During the year, the trust earns $10,000 in corporate bond interest income and recognizes a capital gain of $20,000. The interest is distributed to Allison and the capital gain is properly allocated to principal. Allison (not Sally) will pay tax on

• A)$0.
• B)$10,000.
• C)$20,000.
• D)$30,000.

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Understand the concept of liquidated damages and when they are enforceable under the UCC.

Identify the criteria for the enforcement of specific performance as a remedy.

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Definitions:

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The networks, relationships, and social interactions that provide individuals and communities with value, facilitating cooperation and benefitting collective and individual actions.

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An author and journalist known for exploring the intricacies of social sciences through his books and writings.

Connector

An individual or tool that links people with each other or links concepts, resources, or systems together facilitating interaction or understanding.