When a Beneficiary Receives a Distribution from a Trust of an Asset

question 62

Short Answer

When a beneficiary receives a distribution from a trust of an asset other than cash, generally a(n)____________________ basis is assigned to the asset.

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Definitions:

Average Assets

A financial measure used to calculate the average total assets a company has had at its disposal over a certain period, often used in evaluating asset efficiency and ROI calculations.

Net Sales

The revenue a company makes after subtracting returns, allowances for damages or missing items, and discounts from its total sales.

Stockholders' Equity

The residual interest in the assets of a corporation after deducting its liabilities, representing ownership equity.

Net Income

Represents the total profit of a company after all expenses and taxes have been deducted from total revenue.