The Roz Trust Has Distributable Net Income for the Year

question 28

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 paying these amounts, the trustee is empowered to make additional distributions at its discretion. Exercising this authority, the trustee distributes an additional $10,000 to Roger and $30,000 to Sally. How much gross income from the trust must Sally recognize?

• A) $80,000.
• B) $60,000.
• C) $50,000.
• D) $20,000.

---

Definitions:

Cognitive Psychologists

Psychologists who study the mental processes underlying perception, thought, learning, memory, and decision-making.

Neurobiological Events

Processes or occurrences within the nervous system, often at the cellular or molecular level, that affect neurobiological function or behavior.

Mental Events

Internal occurrences within the mind, such as thoughts, feelings, and perceptions, that can influence behavior.

Social Situations

Environments or occasions where individuals interact with one another, often requiring social awareness and interpersonal skills.