Identify Which of the Following Statements Is True

question 102

Multiple Choice

Identify which of the following statements is true.

• A) The income received by the beneficiaries of the trust loses its character once it is distributed.
• B) Capital losses remaining in the final year of a trust do not pass through to the beneficiaries succeeding to the trust property.
• C) 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.
• D) All of the above are false.

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Definitions:

Potential Energy

The energy held by an object because of its position relative to other objects, stresses within itself, its electric charge, or other factors.

Citric Acid Cycle

A sequence of biochemical processes that aerobic life forms use to liberate energy stored by oxidizing acetyl-CoA, obtained from carbs, fats, and proteins.

Glucose Molecule

A simple sugar that is an important energy source in living organisms and a component of many carbohydrates.

Oxidize Glucose

The process of glucose reacting with oxygen to produce energy, carbon dioxide, and water, primarily through cellular respiration.