Identify Which of the Following Statements Is False

question 82

Multiple Choice

Identify which of the following statements is false.

• A)A trust receives no standard deduction when computing taxable income.
• B)Trust tax preparation fees are miscellaneous itemized deductions and subject to the 2% nondeductible floor.
• C)There is no limit on a fiduciary's charitable contribution deduction if such a contribution is authorized in the trust instrument.
• D)All of the above are false.

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Definitions:

Annual Rates

Interest rates or financial charges that are applied over a one-year period.

Compound Rate

The rate of interest used in calculating compound interest, typically applied over multiple compounding periods.

Investment

The allocation of resources, usually money, in the expectation of generating an income or profit.

Compounded Semiannually

Interest that is computed and appended to the original amount semi-annually.