Identify Which of the Following Statements Is True

question 102

Multiple Choice

Identify which of the following statements is true.

• A) The income received by the beneficiaries of the trust loses its character once it is distributed.
• B) Capital losses remaining in the final year of a trust do not pass through to the beneficiaries succeeding to the trust property.
• C) Beneficiaries of simple trusts are taxed currently on their pro rata share of taxable distributable net income (DNI) regardless of the actual amount distributed to them during the period.
• D) All of the above are false.

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Definitions:

Benzodiazepines

A class of psychoactive drugs known for their sedative effects, commonly used to treat anxiety, insomnia, and seizures.

Cognitive and Psychomotor

Pertaining to the processes of thought and motor actions that result from or influence cognitive functions.

Physical Dependence

A physiological state where the body becomes accustomed to a substance, requiring its presence to function normally.

Phobic Disorder

A mental health condition characterized by an excessive and irrational fear of a specific object, situation, or activity.