Which One of the Following Is Not True of the Tax

question 51

Multiple Choice

Which one of the following is not true of the tax treatment of fiduciaries?

• A)Income is taxed to the beneficiary of the trust or estate to the extent of current distributions of income.
• B)The trust or estate is entitled to a deduction for current distributions of income.
• C)Distributions to beneficiaries are treated like corporate dividends.
• D)Distributions from corpus generally are not taxable to beneficiaries.

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Definitions:

Neurons

Electrically excitable cells that process and transmit information through electrical and chemical signals in the nervous system.

Action Potential

A brief electrical impulse that a neuron uses to transmit information along its axon, essentially an on-off signal.

Axon

A narrow, elongated extension of a neuron that usually transmits electrical signals from the cell body of the nerve cell.

Refractory Period

The period immediately following the transmission of a nerve impulse or the contraction of a muscle during which a nerve or muscle is unresponsive to further stimulation.