Identify Which of the Following Statements Is True

question 34

Multiple Choice

Identify which of the following statements is true.

• A)Beneficiaries of simple trusts are taxed currently on their pro rata share of taxable distributable net income (DNI)regardless of the actual amount distributed to them during the period.
• B)The income received by the beneficiaries of the trust loses its character once it is distributed.
• C)Capital losses remaining in the final year of a trust do not pass through to the beneficiaries succeeding to the trust property.
• D)All of the above are false.

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Definitions:

American Tract Society

A publishing organization founded in 1825 for the purpose of distributing Protestant religious literature in the United States.

Modern Life

The lifestyle and characteristics of society in the contemporary period, influenced significantly by technology, urbanization, and social change.

Bars and Restaurants

Establishments that serve alcoholic beverages and food to the public, often acting as social gathering spots.

Temperance Movement

A widespread reform movement, led by militant Christians, focused on reducing the use of alcoholic beverages.