In the Current Year, a Trust Has Distributable Net Income

question 94

Multiple Choice

In the current year, a trust has distributable net income (DNI) of $30,000. During the year, the trust makes a mandatory distribution to Sarah of $5,000 and a discretionary distribution of $10,000 to Kyle. The trust has no tax-exempt income. The distribution deduction of the trust is

• A)$30,000.
• B)$15,000.
• C)$10,000.
• D)$5,000.

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Definitions:

Auditory Capacity

The ability of an individual to hear and process sounds, which can vary widely between individuals and can be affected by both biological and environmental factors.

Native Language

The primary language a person learns from birth or within the early years, forming the basis for personal, cultural, and social identity.

Nonspeech Sounds

Auditory perceptions that are not classified as language or voice, such as environmental noises or instrumental sounds.

Intermodal Perception

The integration and coordination of information from different sensory modalities, such as sight and sound, into a unified perception.