Identify Which of the Following Statements Is False

question 45

Multiple Choice

Identify which of the following statements is false.

• A) The personal exemption for a trust provides a tax savings when some income is allocated to principal.
• B) A complex trust must distribute all its income annually.
• C) Distributable net income (DNI) sets the ceiling on the amount of distributions taxed to the beneficiaries.
• D) The beneficiaries of a simple trust are taxed on their share of DNI irrespective of the amount they receive.

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Definitions:

Intramuscular

Pertaining to an injection given directly into the muscle tissue.

Inhalation

The process of breathing in, allowing air or other substances to enter the lungs.

Intravenous

Administered within or into a vein.

Intravenous

Refers to the administration of medicines, fluids, nutrients, or other substances directly into a vein.