This Year, the Nano Trust Reported $50,000 Entity Accounting Income

question 153

Multiple Choice

This year, the Nano Trust reported $50,000 entity accounting income and $40,000 distributable net income (DNI) . Nano distributed $30,000 cash to Horatio, its sole income beneficiary. Nano is a complex trust. Nano's distribution deduction is:

• A) $50,000.
• B) $40,000.
• C) $30,000.
• D) $0. Because the distributions of a complex trust are discretionary, no deduction is allowed.

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Definitions:

Self-concept

An individual's perception of their own strengths, weaknesses, and unique qualities; a reflection of one's identity.

Physical

Pertaining to the body and its physiological functions, as opposed to the mind or emotional state.

Achievement Motivation

The willingness to persist at challenging tasks and meet high standards of accomplishment.

Learning Opportunities

Situations or settings that provide potential for acquisition of knowledge, skills, or experience through education or practice.