The Code Defines a "Simple Trust" as Which of the Following

question 141

Multiple Choice

The Code defines a "simple trust" as which of the following?

• A)One which is allowed to file Form 1041-EZ.
• B)One which has only one income beneficiary.
• C)One which must distribute its accounting income every year.
• D)One whose grantor was a living individual.

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Definitions:

Certainty Effect

The tendency for people to overvalue outcomes that are certain compared to those that are only probable.

Reactance

A motivational reaction to offers, persons, rules, or regulations that threaten or eliminate specific behavioral freedoms, prompting a desire to regain them.

Reactance Theory

A psychological theory suggesting that people have an aversive reaction to restrictions of their freedoms, leading to a motivation to regain them.

Forbidden Behaviors

Acts that are prohibited or discouraged within a society or group due to cultural, social, or legal norms and values.