Identify Which of the Following Statements Is True

question 45

Multiple Choice

Identify which of the following statements is true.

• A)In a complex trust, distributable net income (DNI)does not act as a ceiling on the amount of the distribution deduction.
• B)Distributable net income (DNI)is not reduced by the charitable contribution deduction when calculating the deductible discretionary distributions for a complex trust.
• C)In a complex trust, distributable net income (DNI)is not reduced by the charitable contribution deduction when comparing DNI with the mandatory distributions in order to determine the amount of the distribution deduction.
• D)All of the above are false.

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Definitions:

Power Resource Theory

Holds that the distribution of power between major classes partly accounts for the successes and failures of different political parties.

Political Parties

Organized groups of people with similar political ideologies and objectives that seek to influence public policy and government by getting their candidates elected to office.

Class

A system of ordering society wherein people are divided into sets based on perceived social or economic status.

Distribution of Power

The way authority and control are spread across individuals or groups within an organization or society.