A Simple Trust Has a Distributable Net Income (DNI) of $50,000

question 101

Multiple Choice

A simple trust has a distributable net income (DNI) of $50,000 and net accounting income of $60,000, all from taxable sources. The trust has a sole beneficiary, Marty. The trust reports on a calendar tax year and distributes the $60,000 of 2016's net accounting income to Marty on January 20, 2017. No other distributions are made in the current year. Marty's taxable income from the trust this year is

• A) $49,700.
• B) $0.
• C) $50,000.
• D) $60,000.

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Definitions:

Social Processes

Encompass the ways in which individuals interact and establish relationships within a society, shaping norms and influencing behavior.

Contingency Approach

A management theory that suggests the most appropriate form of organizational behavior depends on the specifics of the situation at hand.

Management Style

The approach or method leaders use to direct, motivate, and manage their teams or organizations.

Demands

The requirements or pressures placed upon an individual or organization, which may range from work-related tasks to social expectations.