Which of the Following Statements Is TRUE Regarding Trusts

question 7

Multiple Choice

Which of the following statements is TRUE regarding trusts?

• A)Losses that exceed income in a trust are allocated to the beneficiary at the end of the year.
• B)From a tax perspective, there is little benefit to structuring a business as a royalty trust.
• C)Income that is payable to a beneficiary cannot be deducted from the trust's income.
• D)The residence of a trust is determined by the residence of the trustees.

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Definitions:

Europeans

People originating from or associated with the continent of Europe, known for diverse cultures, languages, and historical backgrounds.

Indentured Servants

Individuals who worked under a contract for a set period of time, without wages, in exchange for transportation, food, and lodging.

Jamestown Colony

The first permanent English settlement in North America, established in Virginia in 1607.