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:

Committed Relationships

Relationships where partners are dedicated to each other and have agreed upon a certain level of significance and exclusivity in their partnership.

Gays And Lesbians

Members of the LGBTQ+ community who identify as homosexual, showing romantic or sexual attraction to individuals of the same sex.

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Children from a previous relationship of one's spouse or partner, not biologically one's own but part of the family dynamic through marriage or partnership.

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