In the Current Year, a Trust Has Distributable Net Income

question 94

Multiple Choice

In the current year, a trust has distributable net income (DNI) of $30,000. During the year, the trust makes a mandatory distribution to Sarah of $5,000 and a discretionary distribution of $10,000 to Kyle. The trust has no tax-exempt income. The distribution deduction of the trust is

• A)$30,000.
• B)$15,000.
• C)$10,000.
• D)$5,000.

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Definitions:

Prophase

The first stage of cell division in both mitosis and meiosis, during which the chromatin condenses into visible chromosomes, and the nuclear envelope begins to disintegrate.

Phosphorylation

Phosphorylation is a biochemical process that involves the addition of a phosphate group to a molecule, crucial for energy transfer and signal transduction in cells.

Cell Cycle

The series of events that take place in a cell leading to its division and duplication.

Cytokinesis

The method by which a single eukaryotic cell's cytoplasm is split into two, resulting in the formation of two offspring cells during cell division.