In the Current Year, a Trust Has Distributable Net Income

question 94

Multiple Choice

In the current year, a trust has distributable net income (DNI) of $30,000. During the year, the trust makes a mandatory distribution to Sarah of $5,000 and a discretionary distribution of $10,000 to Kyle. The trust has no tax-exempt income. The distribution deduction of the trust is

• A)$30,000.
• B)$15,000.
• C)$10,000.
• D)$5,000.

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Definitions:

Task Leadership

The aspect of leadership that focuses on accomplishing goals and managing the tasks and objectives of a team or organization.

Human Factors Psychology

A field of psychology that examines how people interact with products, systems, and environments to improve safety, performance, and satisfaction.

Personnel Psychologists

Psychologists who specialize in the study and practice of improving worker performance and well-being within organizations.

Analytical

Relating to the systematic examination of the structure of something, typically by separating it into its components to understand its nature or to find patterns.