A Trust Has Net Accounting Income of $15,000

question 66

Multiple Choice

A trust has net accounting income of $15,000. In addition, the trust has a $10,000 capital gain, which is not included in net accounting income. The trust is required to distribute the trust income to the beneficiary. The beneficiary will receive

• A)$10,000.
• B)$15,000.
• C)$24,700.
• D)$25,000.

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Definitions:

Common Law

The body of law derived from judicial decisions and customs, as opposed to statutes.

State Level

Pertaining to governmental jurisdictions and activities that occur at the state or provincial rather than national level.

Certainty

The quality of being reliably true, definite, or clearly determined; an absence of doubt.

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A matter or problem that shares characteristics or is nearly identical to another.