A Trust Has the Following Results: the Uniform Act

question 79

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:

Costs of Goods Sold

Costs directly related to the manufacture of products sold by a company.

Accounts Receivable

Outstanding payments from debtors to a company for goods or services already utilized or delivered but not paid for.

Market-to-Book Ratio

A ratio used to compare a company's current market value to its book value, indicating how highly valued a company is in comparison to its actual assets.

Common Stock

A type of equity security that represents ownership in a corporation, giving the holder a share in the company's profits and losses.