A Trust Has Net Accounting Income of $30,000, but Distributable

question 30

Multiple Choice

A trust has net accounting income of $30,000, but distributable net income (DNI) of only $25,000 because certain expenses are charged to principal. The trust is required to distribute $10,000 to Alice and it makes a discretionary distribution of $20,000 to Ben. The trust has no tax-exempt income. The amount that Ben reports as gross income is

• A)$20,000.
• B)$16,667.
• C)$15,000.
• D)none of the above

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Definitions:

Parental Reactions

The responses or behaviors exhibited by parents in reaction to the actions, achievements, or challenges faced by their children.

Perinatal Deaths

Deaths that occur from the 22nd week of gestation up to 7 days after birth, including stillbirths and early neonatal deaths.

Other Deaths

This term could broadly refer to deaths not directly related to the immediate context, perhaps focusing on those occurring separately from the primary subject of discussion.

Focal Point

The center of interest or activity; a primary target or feature within a larger context.