Which of the Following Statements Is TRUE Regarding Trusts

question 8

Multiple Choice

Which of the following statements is TRUE regarding trusts?

• A)Losses that exceed income in a trust are allocated to the beneficiary for tax purposes.
• B)Income that is payable to a beneficiary cannot be deducted from the trust's income.
• C)Inter vivos trusts may be used for commercial purposes.
• D)The residence of a trust is determined by the residence of the trustees.

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Definitions:

Neanderthals

An extinct species of hominids that were closely related to humans, noted for their adaptation to Eurasia's cold climates.

Larger Brains

Refers to brain sizes that are significantly above average, often discussed in evolutionary biology and psychology to understand cognitive abilities.

Modern Humans

Homo sapiens, the species of hominids that represents the current form of humans characterized by advanced cognitive abilities and culture.

Chordates

A large phylum of animals that includes all vertebrates and some invertebrates, characterized by having a notochord at some stage in their development.