A Simple Trust Has a Distributable Net Income (DNI)of $50,000

question 3

Multiple Choice

A simple trust has a distributable net income (DNI) of $50,000 and net accounting income of $60,000,all from taxable sources.The trust has a sole beneficiary,Marty.The trust reports on a calendar tax year and distributes the $60,000 of 2008's net accounting income to Marty on January 20,2009.No other distributions are made in the current year.Marty's taxable income from the trust this year is

• A)$0.
• B)$49,700.
• C)$50,000.
• D)$60,000.

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Definitions:

Provincial Personal Property

Assets or belongings that are considered movable and are within the jurisdiction of a specific province or region.

Security Interest

A legal claim or lien on collateral that has been pledged, usually to secure repayment of a debt.

Security Registration Legislation

Laws and regulations that govern the process and requirements for registering securities, aimed at protecting investors and ensuring transparency in financial markets.

Automobile

A wheeled motor vehicle used for transportation, typically powered by an internal combustion engine or electric motor.