A Simple Trust Has a Distributable Net Income (DNI)of $50,000

question 97

Multiple Choice

A simple trust has a distributable net income (DNI) of $50,000 and net accounting income of $60,000, all from taxable sources. The trust has a sole beneficiary, Marty. The trust reports on a calendar tax year and distributes the $60,000 of 2018's net accounting income to Marty on January 20, 2019. No other distributions are made in the current year. Marty's taxable income from the trust this year is

• A)$0.
• B)$49,700.
• C)$50,000.
• D)$60,000.

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Definitions:

Methadone

A synthetic opioid used for pain management and as part of medication-assisted treatment for opioid use disorder.

Psychological Dependence

A form of dependence characterized by a perceived need to use a substance for emotional relief or to achieve altered states of consciousness.

Physical Dependence

A physiological state of adaptation to a specific psychoactive substance, characterized by the emergence of withdrawal symptoms when the substance is discontinued.

Hypnogogic Hallucination

Vivid, often bizarre sensory experiences that occur during the transition from wakefulness to sleep, typically not associated with pathological conditions.