The Trustee of the Dan Durrell Trust Is Authorized to Pay

question 17

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; the trustee distributes $10,000 to the wife as required and $25,000 at the trustee's discretion. How much is the wife taxed on?

• A) $20,000
• B) $35,000
• C) $15,000
• D) $10,000

---

Definitions:

Bowling Pin Strategy

A business approach where success with one target market or product leads to subsequent success with additional markets or products, akin to knocking down a series of pins.

Beachhead Strategy

A strategy in which a company focuses efforts and resources on capturing and dominating a small market segment before expanding to larger markets.

Launch Market

Refers to the specific market or audience a company targets when releasing a new product or service.

Bottom-Up Analysis

A strategy used in analysis that starts with specific details and moves towards the bigger picture, often used in financial planning and investment strategy.