Which of the Following Applies to a Simple Trust

question 63

Multiple Choice

Which of the following applies to a simple trust?

• A)It is allowed a $100 deduction on its income tax return
• B)It is required to make annual charitable contributions
• C)It must distribute its accounting income to its beneficiaries annually
• D)The trustee must distribute capital gain income

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Definitions:

Price Floor

A government- or authority-imposed minimum price that can be charged for a good or service, intended to prevent prices from falling too low.

Equilibrium Price

The price at which the quantity of a good or service demanded by consumers matches the quantity supplied by producers, resulting in no surplus or shortage.

Market Price

The actual selling price of a good or service in the market at which it can be bought or sold.

Surplus

The amount by which quantity supplied exceeds quantity demanded, often resulting in excess goods and a decrease in prices.