In the Current Year, a Trust Has Distributable Net Income

question 94

Multiple Choice

In the current year, a trust has distributable net income (DNI) of $30,000. During the year, the trust makes a mandatory distribution to Sarah of $5,000 and a discretionary distribution of $10,000 to Kyle. The trust has no tax-exempt income. The distribution deduction of the trust is

• A)$30,000.
• B)$15,000.
• C)$10,000.
• D)$5,000.

---

Definitions:

Creative Problem Solver

An individual proficient in thinking outside the box to find innovative or non-traditional solutions to complex problems.

Bulletin Board

A physical or digital board where information, notices, or advertisements are posted for public viewing.

Tactical Partner

A business ally or collaborator involved in strategic planning to achieve specific, short-term objectives.

Customer-Relationship Model

A business strategy that focuses on maintaining engaging, loyal relationships with customers to foster brand loyalty and repeat business.