A Trust Is Required to Distribute All of Its Income

question 92

Multiple Choice

A trust is required to distribute all of its income annually. It distributes all of the income and $2,000 of principal to the beneficiary. Which of the following statements is correct?

• A)The trust is a complex trust and is allowed a $300 exemption.
• B)The trust is a complex trust and is allowed a $100 exemption.
• C)The trust is a simple trust and is allowed a $300 exemption.
• D)The trust is a simple trust and is allowed a $100 exemption.

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Definitions:

Raw Materials

Basic materials extracted from the environment or that are used in the initial stages of production to make goods.

Tariffs

Taxes levied on imported goods and services, intended to make imported goods more expensive to protect domestic industries.

Quotas

Limits set by a government on the amount of a specific good that can be imported or exported during a given time frame, often to protect domestic industries.

Pirating

The unauthorized use or reproduction of another's work without permission.