Panther Trust Has Net Accounting Income and Distributable Net Income

question 50

Multiple Choice

Panther Trust has net accounting income and distributable net income of $100,000, $75,000 from taxable sources and $25,000 from tax-exempt sources. During the year, the trust makes a mandatory distribution to Julius and Steve of $50,000 each. How much of Steve's distribution is taxable?

• A)$12,500
• B)$25,000
• C)$37,500
• D)$50,000

---

Definitions:

State

A nation or territory considered as an organized political community under one government.

Disfranchisement

The removal of the right to vote from a person or group, often used as a tool for political or racial discrimination.

White Progressives

Early 20th-century reformers, primarily from the white middle class, who sought to address issues of social justice, labor rights, and government corruption.

Fiscal Responsibility

The principle of managing a government's budget in a way that balances spending with revenues, aiming to ensure that governments do not spend beyond their means and maintain a sustainable level of debt.