A Trust Has Net Accounting Income of $15,000

question 66

Multiple Choice

A trust has net accounting income of $15,000. In addition, the trust has a $10,000 capital gain, which is not included in net accounting income. The trust is required to distribute the trust income to the beneficiary. The beneficiary will receive

• A)$10,000.
• B)$15,000.
• C)$24,700.
• D)$25,000.

---

Definitions:

AASB 6

Exploration for and Evaluation of Mineral Resources, an Australian standard that governs the financial reporting of exploration and evaluation expenditures in the mining sector.

Exploration Phase

The period in the development of a mining, oil, or gas project focused on discovering and determining the size and quality of a mineral or hydrocarbon deposit.

Development Phase

A stage in the business cycle or project where new products, ideas, or projects are being developed, prior to commercial production or sale.

Exploration and Evaluation

Activities related to the search for mineral resources, including minerals, oil, natural gas, and similar non-regenerative resources after the entity has obtained rights to explore in a specific area.