A Trust Distributes 30% of Its Income to Mark and 20

question 49

Multiple Choice

A trust distributes 30% of its income to Mark and 20% to Nancy. The remaining 50% is accumulated. The trust's depreciation is $1,000. The trust instrument is silent regarding the depreciation deduction. State law requires the depreciation be charged to principal. What part of the depreciation deduction will be allocated to Mark?

• A)$0
• B)$200
• C)$300
• D)$1,000

---

Definitions:

Prenegotiate

The process of discussing and agreeing on basic terms before entering into formal negotiations.

Negotiation Process

The systematic approach or series of steps taken by parties to come to an agreement or resolve a dispute.

Bargainers

Individuals or parties engaged in negotiations seeking to reach a mutual agreement.

Assumptions

Beliefs or premises taken for granted without requiring conclusive evidence.