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

question 101

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 2016's net accounting income to Marty on January 20, 2017. No other distributions are made in the current year. Marty's taxable income from the trust this year is

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

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Definitions:

Retroactive Amnesia

A type of amnesia where an individual loses memories for events that occurred before a certain event, often a traumatic one, making it difficult to remember past information.

Retrograde Amnesia

A loss of memory-access to events that occurred, or information that was learned, before an injury or the onset of a disease.

Prefrontal Lobe

A part of the frontal lobes of the brain involved in decision making, social behavior, and personality expression.

Hippocampus

A major component of the brains of humans and other vertebrates, involved in the consolidation of information from short-term memory to long-term memory and spatial navigation.