A Trust Has the Following Results: the Uniform Act

question 57

Multiple Choice

A trust has the following results: The Uniform Act is followed.The trust document requires one-fifth of the income to be distributed annually to David and the remainder of the income to Patty.What is distributable net income?

• A)$74,000
• B)$72,000
• C)$64,000
• D)$62,000

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Definitions:

Production Departments

Divisions within a manufacturing company responsible for different stages of the production process.

Direct Materials

Raw materials that can be directly traced to the production of a specific good or service in manufacturing or production.

Factory Overhead

Factory overhead refers to the indirect manufacturing costs not directly tied to the production of goods, such as utilities or management salaries.

Machine Hours

The total operating time of a machine, used as a basis for allocating manufacturing overhead.