A Trust Is Required to Distribute All of Its Income

question 22

Multiple Choice

A trust is required to distribute all of its income currently. Two years ago, it had a $10,000 capital loss. Last year, it had a $3,000 capital gain. This year, the trust is terminated. Albert has a 40% interest in the trust, and Barbara has a 60% interest. Barbara receives a capital loss pass- through of

• A) $7,000.
• B) $4,200.
• C) $0.
• D) $2,400.

---

Definitions:

Union Leader

A representative elected or chosen by members of a labor union who advocates for workers' rights, negotiates labor contracts, and addresses grievances.

Voluntary Recognition

The process by which employers formally acknowledge a union or workers' group without the need for a formal election.

Organized

The state or condition of being systematically arranged, especially in a manner that ensures efficiency and ease of access or use.

Provincial Labour Law

Legal statutes and regulations governing employment standards, worker rights, and workplace conditions, specific to a particular province or region.