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.

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Definitions:

Fundamental Human Needs

Basic requirements that are universal to all humans, including physiological needs, safety, love/belonging, esteem, and self-actualization.

Blustein's Perspective

A theoretical framework that focuses on the psychological relationship between individuals and their work, emphasizing the importance of work in personal identity and social integration.

Good Choices

Decisions that positively align with one's career goals, personal values, and life circumstances.

Critical Reflection

The process of analytically examining one's beliefs, actions, and their outcomes to gain deeper understanding and promote personal growth or change.