Identify Which of the Following Statements Is False

question 28

Multiple Choice

Identify which of the following statements is false.

• A)The personal exemption for a trust provides a tax savings when some income is allocated to principal.
• B)Distributable net income (DNI)sets the ceiling on the amount of distributions taxed to the beneficiaries.
• C)A complex trust must distribute all its income annually.
• D)The beneficiaries of a simple trust are taxed on their share of DNI irrespective of the amount they receive.

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Definitions:

Direct Materials Cost

The cost of raw materials directly traceable to the production of a specific product.

Manufacturing Process

The sequence of operations or methods used to create a finished good from raw materials in a systematic and controlled manner.

Manufactured Product

A good that has undergone a transformation process from raw materials to a finished product ready for sale.

Factory Overhead Cost

The indirect costs associated with manufacturing, including utilities, rent, and salaries for support staff, that cannot be directly traced to a specific product.