Identify Which of the Following Statements Is True

question 69

Multiple Choice

Identify which of the following statements is true.

• A)Under the grantor trust rules, a grantor may be taxed on all or a portion of the trust's income even though the income is distributed to the named beneficiary or someone else.
• B)An irrevocable trust cannot be a grantor trust.
• C)Large amounts of income can be shifted to children under the age of 18 through the use of trusts that make distributions, and the income will be taxed at the lower rates of the children.
• D)All of the above are false.

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Definitions:

Search Marketing

A form of Internet marketing that promotes websites by increasing their visibility in search engine results pages.

Paid

Refers to content, advertising, or other promotional activities for which a company has paid to be displayed or distributed, typically aiming at broadening reach or targeting specific audiences.

Unpaid Efforts

Refers to voluntary actions or work that is undertaken without financial compensation, often contributing to marketing, social causes, or community services.

Web Crawlers

Automated programs or scripts that systematically browse the World Wide Web for the purpose of web indexing or gathering specific data.