J and Z, Husband and Wife, Created a Trust for J's

question 45

Multiple Choice

J and Z, husband and wife, created a trust for J's aging mother, Betty.This year the trust received dividend income of $15,000 and distributed $10,000 to Betty.The taxable income of the trust and Betty is?

• A)Trust $15,000, Betty $10,000
• B)Trust $0, Betty $15,000
• C)Trust $5,000, Betty $10,000
• D)Trust $15,000, Betty $0
• E)None of the above

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Definitions:

Experiment

A controlled test of a hypothesis in which the researcher manipulates one variable to discover its effect on another.

Independent Variable

In an experiment, the variable that is manipulated or changed by the researcher to observe its effects on the dependent variable.

Manipulated

Altered, controlled, or handled skillfully, often with the implication of unfairness or deceit.

Optimism

A mental attitude characterized by hope and confidence in success and a positive future.