Which of the Following Statements Is TRUE Regarding Trusts

question 9

Multiple Choice

Which of the following statements is TRUE regarding trusts?

• A)Losses that exceed income in a trust are allocated to the beneficiary at the end of the year.
• B)The allocation of income from a trust is discretionary.
• C)Income that is payable to a beneficiary cannot be deducted from the trust's income.
• D)The residence of a trust is determined by the residence of the trustees.

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Definitions:

Compressed

Reduced in volume as a result of applied pressure.

Atm

Standard atmosphere, a unit of pressure defined as 101,325 Pa; commonly used as a reference pressure in physics and meteorology.

Container

An object used to hold, store, or transport items, ranging from simple boxes to large shipping containers.

Volume

The amount of space that a substance or object occupies or that is enclosed within a container.