Which of the Following Is Not an Addition to Trust

question 57

Multiple Choice

Which of the following is not an addition to trust taxable income when computing distributable net income (DNI) ?

• A)distribution deduction
• B)capital gains allocated to principal
• C)tax-exempt interest
• D)personal exemption

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Definitions:

Net Loss

The amount by which a company's expenses exceed its revenues over a specific period, indicating a negative financial performance.

Share

A unit of ownership interest in a corporation or financial asset, representing an equal proportion of the company's capital.

Salary

Regular payment from an employer to an employee, often expressed on an annual basis.

Capital Balances

Represent the amount of funds contributed by owners plus retained earnings in a company's equity.