During the Current Year, a Trust Received $260,000 of Taxable

question 8

Multiple Choice

During the current year, a trust received $260,000 of taxable interest income, paid trustee's commissions of $60,000, and had no other income or expenses.The trust instrument requires that $70,000 be paid annually to Rachel, and $130,000 be paid annually to Courtney.How much income must Rachel and Courtney recognize for tax purposes?

• A)$91,000 by Rachel and $169,000 by Courtney.
• B)$100,000 by Rachel and $100,000 by Courtney.
• C)$70,000 by Rachel and $130,000 by Courtney.
• D)$130,000 by Rachel and $70,000 by Courtney.
• E)None of the above.

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Definitions:

Dying

The process of approaching death, including the biological and emotional changes that occur in the final phase of life.

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An individual characterized by experience, knowledge, and good judgment.

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