Identify Which of the Following Statements Is True

question 34

Multiple Choice

Identify which of the following statements is true.

• A)Beneficiaries of simple trusts are taxed currently on their pro rata share of taxable distributable net income (DNI)regardless of the actual amount distributed to them during the period.
• B)The income received by the beneficiaries of the trust loses its character once it is distributed.
• C)Capital losses remaining in the final year of a trust do not pass through to the beneficiaries succeeding to the trust property.
• D)All of the above are false.

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Definitions:

Hypothalamus

A region of the brain below the thalamus that coordinates both the autonomic nervous system and the activity of the pituitary, controlling body temperature, thirst, hunger, and other homeostatic systems.

Autonomic Nervous System

The part of the nervous system that regulates involuntary functions, such as heart rate, digestion, and respiration.

Memory

Cognitive function that allows storing, retaining, and recalling information from past experiences.

Parietal Lobe

A region of the cerebral cortex involved in processing sensory information related to touch, spatial orientation, and navigation.