The Doyle Trust Reports Distributable Net Income of $100,000 for the Year

question 29

Multiple Choice

The Doyle Trust reports distributable net income of $100,000 for the year and no income from tax-exempt sources. Under the terms of the trust instrument, the trustee must distribute $20,000 to Roger and $20,000 to Sally. After paying these amounts, the trustee can make additional distributions at its discretion. Exercising this authority, the trustee distributes an additional $25,000 to Roger and $50,000 to Sally. How much gross income from the trust must Roger recognize?

• A) $50,000
• B) $45,000
• C) $40,000
• D) $20,000

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Definitions:

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Ionize

The process by which an atom or a molecule acquires a negative or positive charge by gaining or losing electrons.

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A type of ionizing radiation consisting of two protons and two neutrons; they are a common form of particles emitted by radioactive materials.

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Electromagnetic radiation of the highest frequency and energy, emitted from atomic nuclei during radioactive decay.