For the Year, the Uldis Trust Has Distributable Net Income

question 73

Multiple Choice

For the year, the Uldis Trust has distributable net income (DNI) of $100,000 and no income from tax-exempt sources. Under the terms of the trust instrument, the trustee must distribute $75,000 to Roger and $75,000 to Sally. After paying these amounts, the trustee can make additional distributions at its discretion. Exercising this authority, the Uldis trustee distributes an additional $10,000 to Roger and $30,000 to Sally. How much gross income from the trust must Roger recognize?

• A) $10,000
• B) $50,000
• C) $75,000
• D) $85,000

---

Definitions:

Constitutions

A set of fundamental principles or established precedents according to which a state or other organization is governed.

State Structures

The organized system of political institutions and processes through which a country or organization is governed.

Civil Unrest

A broad term describing public expressions of dissatisfaction through demonstrations, strikes, or violent protest against governments or institutions.

National Prosperity

The economic wealth and well-being of a nation, characterized by strong economic indicators such as high GDP, low unemployment, and access to resources.