A Trust Is Required to Distribute 10% of Its Income

question 103

Multiple Choice

A trust is required to distribute 10% of its income to Eleanor. In addition, the trustee in his discretion may distribute income to Eleanor and/or Marshall. The trust has net accounting income of $50,000, none of which is tax-exempt. The trust distributes the $5,000 mandatory payment to Eleanor and also distributes discretionary amounts of $5,000 to Eleanor and $5,000 to Marshall. How much must Eleanor include in income?

• A)$5,000
• B)$10,000
• C)$50,000
• D)none of the above

---

Definitions:

Ethical Behavior

Conduct that is in alignment with accepted principles of right or wrong governing the conduct of a person or the members of a profession.

Universal Ethical Principles

Fundamental moral guidelines that are considered to be universally applicable to all individuals regardless of culture, time, or situation.

Peacemaking Criminology

An approach to criminology that focuses on resolving conflicts and preventing crime through non-punitive means.

Pyramid Of Concepts

A hierarchical structure of ideas or concepts, arranged from the most general at the base to the more specific at the top.