A Particular Trust Has Income-Producing Real Property as Its Sole

question 88

Multiple Choice

A particular trust has income-producing real property as its sole asset.Which of the following trust proceeds or expenditures should be allocated to the principal?

• A)Annual payments on a fire insurance policy to protect the trust property.
• B)The cost of a long-term permanent improvement to the trust property.
• C)Rental income from the trust property.
• D)Real estate taxes paid on the trust property.

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Definitions:

Single-Celled

Referring to organisms that consist of only one cell, carrying out all the functions necessary for life.

Dinoflagellates

A phylum of microorganisms found in marine and freshwater environments, known for their ability to conduct photosynthesis and for some species, to produce bioluminescence and harmful algal blooms.

Alveolates

A group of protists characterized by the presence of alveoli, small sacs underneath their cell membranes.

Kelps

Large brown seaweeds that grow in underwater forests in shallow oceans, known for their high growth rate and the complex habitat they provide for marine life.