When an Accountant Serves as a Trustee of a Blind

question 12

Multiple Choice

When an accountant serves as a trustee of a blind trust and prepares annual state and federal tax returns for the trust,the accountant:

• A) Is entitled to compensation both for serving as a trustee and for preparing the tax returns
• B) Is entitled to compensation for serving as the trustee, but is not entitled to separate and independent compensation for preparing the tax returns
• C) Is not entitled to compensation for serving as the trustee, but is entitled to compensation for preparing the tax returns because a trustee is not expected as part of her customary duties to have sufficient skill or training to prepare accurate tax returns
• D) Is not entitled to compensation whatsoever, and is allowed to delegate the task of preparing tax returns to a competent, paid tax return preparer

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Definitions:

Labor Union

An organization of workers formed to protect and advance their rights and interests through collective bargaining with employers.

American

Relating to or characteristic of the United States of America, its inhabitants, or their culture.

Wage System

The method or structure of paying laborers and employees for their work, often based on hours worked, productivity, or roles.

Government Ownership

The situation where assets, enterprises, or sectors are owned and controlled by the government rather than private individuals or companies.