Apple Trust Reports Net Accounting Income of $40,000, All from Taxable

question 4

Multiple Choice

Apple Trust reports net accounting income of $40,000, all from taxable sources. The trustee is required to distribute $15,000 annually to Megan. The trustee also makes discretionary distributions of $30,000, $7,500 to Megan and $22,500 to Caroline. The trust pays $5,000 of the discretionary distributions from corpus. What is the taxable amount of the Megan's tier-2 distribution?

• A)$7,500
• B)$6,250
• C)$15,000
• D)$22,500

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Definitions:

Scientific Enterprise

The systematic pursuit of knowledge involving the observation, identification, description, experimental investigation, and theoretical explanation of phenomena.

Self-Report Measure

A method of data collection where individuals provide information about themselves, often used in psychological assessments and surveys.

Positive Correlation

A relationship between two variables where they both increase or decrease together.

Negative Correlation

A relationship between two variables in which one variable increases as the other decreases.