Which of the Following Is Not an Addition to Trust

question 9

Multiple Choice

Which of the following is not an addition to trust taxable income when computing distributable net income (DNI) ?

• A) tax- exempt interest
• B) personal exemption
• C) distribution deduction
• D) capital gains allocated to principal

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Definitions:

Marginal Cost

The cost of producing one more unit of a good or service.

Marginal Cost

The increased cost resulting from the production of an extra unit of a good or service.

Fourth Unit

A reference to a specific item in a series, often used in economic theories or models to discuss marginal utility or cost of an additional unit.