Panther Trust Has Net Accounting Income and Distributable Net Income

question 56

Multiple Choice

Panther Trust has net accounting income and distributable net income of $100,000, $75,000 from taxable sources and $25,000 from tax-exempt sources. During the year, the trust makes a mandatory distribution to Julius and Steve of $50,000 each. The distribution deduction is

• A)$25,000.
• B)$50,000.
• C)$75,000.
• D)$100,000.

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Definitions:

Household Duties

Tasks and chores that are required to maintain the running of a home, such as cleaning, cooking, and gardening.

Obergefell V. Hodges

A landmark civil rights case in which the Supreme Court of the United States ruled that the fundamental right to marry is guaranteed to same-sex couples.

Same-Sex Couples

Romantic partnerships between two individuals of the same gender, recognized in various legal, social, and cultural contexts.

Legally Married

The state of being united to a person of the opposite sex as husband or wife in a consensual and contractual relationship recognized by law.