A Trust Has Net Accounting Income and Distributable Net Income

question 99

Multiple Choice

A trust has net accounting income and distributable net income (DNI) of $60,000, all from taxable sources. The trustee is required to distribute $40,000 of current income to Harry. In addition, the trustee makes a discretionary distribution to Harry of $10,000 and a discretionary distribution to Susan of $30,000. $20,000 of the $40,000 total discretionary distributions is from corpus. Gross income reportable by Harry is

• A)$50,000.
• B)$45,000.
• C)$37,500.
• D)$30,000.

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Definitions:

Negotiators

Participants engaged in negotiations with the goal of coming to a consensus.

Outcomes

The results or consequences of an action, decision, or process, which can be measured to determine success or failure.

Language Intensity

The degree of strength or forcefulness in the manner of expressing language.

Strong Feelings

Intense emotions that can significantly influence an individual's thoughts and behaviors.