The Roosevelt Trust Generated a Net Operating Loss This Year

question 9

Multiple Choice

The Roosevelt Trust generated a net operating loss this year of $300,000.The Trust terminates December 31, 2009.Sienna receives $200,000 of corpus upon termination and Barry receives the remaining $300,000.Both Sienna and Barry are calendar year taxpayers.Which of the following statements is correct?

• A)Neither beneficiary gets a deduction this year.
• B)Sienna deducts $150,000.
• C)Barry deducts $180,000.
• D)Sienna and Barry each deduct $150,000.
• E)Sienna, Barry, and the Trust each deduct $100,000.

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Definitions:

Anosmia

A loss of the sense of smell.

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A medical condition characterized by the perception of noise or ringing in the ears when no external sound is present.

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The principle that one sense can influence or interact with another, enhancing or diminishing the perception of a stimulus.

Vestibular Sense

The sensory system responsible for providing the brain with information about motion, head position, and spatial orientation, contributing to balance and movement coordination.