A Trustee Has a Duty to Make Proper Allocation of Income

question 37

Multiple Choice

A trustee has a duty to make proper allocation of income items.Which of the following statements is true concerning this allocation?

• A) Ordinary income is allocated to the remainderman.
• B) Ordinary expenses are chargeable to the income beneficiary.
• C) Rents and royalties to the remainderman.
• D) Extraordinary repairs to the income beneficiary.

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Definitions:

Standards

Established criteria or benchmarks that define the expected or acceptable level of quality or achievement in a specific area.

Job Rotation

A human resources strategy involving the periodic shifting of an employee among various jobs or tasks to enhance skills and motivation.

Departments

Distinct sections within an organization, each focused on a specific operational area or function, such as marketing or finance.

Capabilities

The qualities, skills, and expertise that enable an organization or individual to perform effectively.