A Simple Trust

question 15

Multiple Choice

A simple trust

• A)may make charitable distributions.
• B)may make discretionary distributions of principal.
• C)may accumulate income.
• D)is required to distribute all of its income currently.

---

Definitions:

Present Value Factors

Numeric factors used in calculating the present value of future cash flows, reflecting the time value of money.

Interest Revenue

Income earned from investments in interest-bearing assets like bonds, loans, and savings accounts.

Bargain Purchase Option

An option in a lease agreement that allows the lessee to purchase the leased asset at the end of the lease term for a price significantly lower than the expected fair market value.

Equipment Leased

Assets acquired for use over a specified period through a rental agreement, where ownership remains with the lessor.