Identify Which of the Following Statements Is True

question 82

Multiple Choice

Identify which of the following statements is true.

• A)Tax-exempt income is allocated among beneficiaries in the proportion that total tax-exempt income bears to total distributable net income (DNI).
• B)Both income required to be distributed currently and discretionary income distributions are included in tier-1 distributions.
• C)Under the tier system,tier-2 beneficiaries are the first to absorb income.
• D)All are false.