The Trustee of the Dan Durrell Trust Is Authorized to Pay

question 30

Multiple Choice

The trustee of the Dan Durrell trust is authorized to pay to the wife $10,000 per year and at, his or her discretion, distribute income or corpus to the beneficiary. In 2012, the trustee has DNI of $20,000 and distributes $10,000 to the wife and $25,000 to the beneficiary. What is the beneficiary taxed on in 2012?

• A) $15,000
• B) $10,000
• C) $20,000
• D) $20,500

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Definitions:

Adipose Tissue

Adipose tissue is a type of body tissue that stores fat, serving as an energy reserve and providing insulation and cushioning.

Bargaining Unit(s)

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Clerical Employees

Workers who perform administrative and office functions, such as typing, filing, and managing records.

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