Panther Trust Has Net Accounting Income and Distributable Net Income

question 81

Multiple Choice

Panther Trust has net accounting income and distributable net income of $100,000, $75,000 from taxable sources and $25,000 from tax- exempt sources. During the year, the trust makes a mandatory distribution to Julius and Steve of $50,000 each. The distribution deduction is

• A) $50,000.
• B) $75,000.
• C) $25,000.
• D) $100,000.

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Definitions:

Theory of Mind

The capacity to recognize and understand thoughts, feelings, desires, and intentions in oneself and others, while also grasping that others may hold beliefs, desires, and intentions that diverge from one's personal ones.

Egocentrism

The inability to understand or assume any perspective other than one's own.

Habituation Technique

A method used to reduce reactions to repeated stimuli by exposing the subject to the stimulus over time until the response diminishes.

Object Permanence

The understanding that objects continue to exist even when they cannot be observed (seen, heard, touched, smelled or sensed in any way).