Identify Which of the Following Statements Is True

question 34

Multiple Choice

Identify which of the following statements is true.

• A)Beneficiaries of simple trusts are taxed currently on their pro rata share of taxable distributable net income (DNI)regardless of the actual amount distributed to them during the period.
• B)The income received by the beneficiaries of the trust loses its character once it is distributed.
• C)Capital losses remaining in the final year of a trust do not pass through to the beneficiaries succeeding to the trust property.
• D)All of the above are false.

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Definitions:

Market Price

The current price at which an asset or service can be bought or sold.

Call

In finance, a call refers to an option contract that gives the holder the right, but not the obligation, to buy a stock, bond, commodity, or other instruments at a specified price within a specific time period.

Stock Price

The cost of purchasing a share of a company, as traded on a stock exchange, reflecting the market's view of its collective prospects.

Value

The importance, worth, or usefulness of something, often measured in terms of money or utility.