The Roz Trust Has Distributable Net Income for the Year

question 89

Multiple Choice

The Roz Trust has distributable net income for the year of $100,000 and no income from tax-exempt sources. Under the terms of the trust instrument, the trustee must distribute $30,000 to Roger and $30,000 to Sally. After payment of these amounts, the trustee is empowered to make additional distributions at its discretion. Exercising this authority, the trustee distributes an additional $40,000 to Roger and $40,000 to Sally. How much income from the trust must Sally recognize?

• A) $90,000.
• B) $60,000.
• C) $50,000.
• D) $40,000.

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Definitions:

Re-arrest Rates

The frequency at which individuals who have been previously arrested are arrested again, typically measured within a specific time frame.

Degrees of Freedom

A concept in statistics that describes the number of independent pieces of information used in the calculation of a statistic.

Chi-square Statistic

A measure used in statistics to assess the differences between observed and expected outcomes in categorical datasets.

Subsequent Arrests

Arrests that occur after the initial arrest, indicating instances of repeat or additional offenses by an individual.