Apple Trust Reports Net Accounting Income of $40,000, All from Taxable

question 4

Multiple Choice

Apple Trust reports net accounting income of $40,000, all from taxable sources. The trustee is required to distribute $15,000 annually to Megan. The trustee also makes discretionary distributions of $30,000, $7,500 to Megan and $22,500 to Caroline. The trust pays $5,000 of the discretionary distributions from corpus. What is the taxable amount of the Megan's tier-2 distribution?

• A)$7,500
• B)$6,250
• C)$15,000
• D)$22,500

---

Definitions:

Prices

Prices are the amounts of money expected, required, or given in payment for something.

Good

In economics, it refers to a material item that satisfies some human desire or need. Goods can be tangible, like a book, or intangible, like a service.

Computer Software

Programs and operational information that run on computers, directing the computer's hardware to perform specific tasks.

Computers

Electronic devices capable of executing a set of instructions to perform various tasks, including processing, storing, and displaying information.