Apple Trust Reports Net Accounting Income of $40,000, All from Taxable

question 4

Multiple Choice

Apple Trust reports net accounting income of $40,000, all from taxable sources. The trustee is required to distribute $15,000 annually to Megan. The trustee also makes discretionary distributions of $30,000, $7,500 to Megan and $22,500 to Caroline. The trust pays $5,000 of the discretionary distributions from corpus. What is the taxable amount of the Megan's tier-2 distribution?

• A)$7,500
• B)$6,250
• C)$15,000
• D)$22,500

---

Definitions:

Androgynous

Describes individuals with a blend of characteristics traditionally considered masculine and feminine, in terms of appearance, behavior, or identity.

Syndicated Sports

Pre-packaged sports broadcasting content distributed or licensed across multiple television stations or media platforms, often beyond geographical boundaries.

Androgynous

Androgynous describes a person or characteristic that blends or lacks distinction between traditional male or female gender roles or expressions.

Feminine Traits

Characteristics traditionally associated with women, such as empathy, sensitivity, caring, and nurturance.