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

Grasp the importance of context in leadership, including both internal and external environments.

Recognize effective collaboration strategies between leaders and group members.

Identify different roles leaders play within an organization.

Describe the intrinsic and external motivations that contribute to leadership effectiveness.

---

Definitions:

Legal Damages

Compensation, often financial, awarded by a court to a person who has suffered loss or injury due to the unlawful act or negligence of another.

Novation

In a contract, the substitution of a third party for one of the original parties; the duties remain the same under the contract, but one original party is discharged and the third party takes that original party’s place.

Substituted Contract

An agreement between the contracting parties to replace an existing contract with a new one, possibly altering terms or obligations.

Punitive Damages

Financial compensation awarded in a lawsuit intended to punish the defendant for especially harmful behavior and deter future misconduct.