The Uldis Trust Reports Distributable Net Income for the Year

question 18

Multiple Choice

The Uldis Trust reports distributable net income for the year of $100,000 and no income from tax-exempt sources. Under the terms of the trust instrument, the trustee must distribute $75,000 to Roger and $75,000 to Sally. After paying these amounts, the trustee is empowered to make additional distributions at its discretion. Exercising this authority, the Uldis trustee distributes an additional $10,000 to Roger and $30,000 to Sally. How much gross income from the trust must Sally recognize?

• A) $30,000
• B) $50,000
• C) $100,000
• D) $105,000

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Definitions:

Remote Settings

Locations that are physically distant from major population centers, often characterized by limited access to healthcare and other services.

Farm Safety

Practices and measures implemented to mitigate risks and ensure the well-being of individuals working in agricultural settings.

Fatal Injuries

Injuries resulting in death, typically due to accidents, violence, or severe health issues.

Preschoolers

Young children typically between the ages of 3 to 5 years, who are in the developmental phase prior to entering elementary school.