This Year, the Suarez Trust Generated Distributable Net Income (DNI)

question 51

Multiple Choice

This year, the Suarez Trust generated distributable net income (DNI) of $150,000, two-thirds of which was portfolio income, and the balance of which was exempt interest. Under the terms of the trust, Clara Suarez is to receive an annual income distribution of $30,000. At the discretion of the trustee, additional distributions can be made to Clara, or to Clark Suarez III. This year, the trustee's distributions to Clara totaled $60,000. Clark received $90,000. How much of the trust's DNI is assigned to Clark?

• A) $0, only first-tier distributions are subject to Federal income tax.
• B) $60,000
• C) $75,000
• D) $90,000

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Definitions:

PET

Positron Emission Tomography, a scanning method used to observe metabolic processes in the body.

Radioactive Isotopes

Variants of chemical elements that have an unstable nucleus, releasing radiation as they decay.

fNIRS

Functional Near-Infrared Spectroscopy (fNIRS) is a non-invasive imaging technique that measures brain activity by detecting changes in blood oxygen levels, indicative of neural activity.

Brain Activity

Electrical or metabolic activity within the brain that indicates functional processes, including thought, emotions, and coordination.