For the Year, the Brighton Trust Has Distributable Net Income

question 127

Multiple Choice

For the year, the Brighton Trust has distributable net income of $100,000 and no income from tax-exempt sources. Under the terms of the trust instrument, the trustee is required to distribute $25,000 to Roger and $50,000 to Sally. After payment of these amounts, the trustee can make additional distributions at its discretion. Exercising this authority, the Brighton trustee distributes an additional $20,000 to Roger, and $30,000 to Sally. How much income from the trust must Sally recognize?

• A) $80,000
• B) $65,000
• C) $50,000
• D) $30,000

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Definitions:

Influence Effectively

The ability to sway or alter someone's behavior, decisions, or opinions in a meaningful and positive way.

Bathsheba Syndrome

An ethical failure observed in leaders who have achieved significant power and success, leading to moral lapses or unethical behavior.

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The quality of being honest and having strong moral principles that one refuses to violate.

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An approach that emphasizes a structured order or ranking within systems or organizations, often focusing on varying levels of importance or authority.