The Raven Trust Was Terminated This Year and David, the Beneficiary

question 61

Multiple Choice

The Raven Trust was terminated this year and David, the beneficiary of the corpus, received all of the trust assets.The trust had a $10,000 net operating loss; this was the only tax year in which the trust operated a business.The entity has one income beneficiary, Flo.As a result of these transactions:

• A)Flo claims the $10,000 NOL on her Form 1040.
• B)David claims the $10,000 NOL on his Form 1040.
• C)Flo and David each report a $5,000 NOL on their Forms 1040.
• D)The $10,000 NOL is lost forever.

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Definitions:

Church

A building used for public Christian worship or the Christian religious organization itself, often associated with a specific denomination or tradition.

Slave Traders

People or companies involved in the buying, transporting, and selling of individuals into slavery, often as part of the Transatlantic Slave Trade.

Slave Families

Family units among the enslaved population, forming bonds and kinships often in the face of oppression and the threat of separation due to sale or punishment.

Trains

Rail vehicles that move along tracks and are used for transporting people or goods over long and short distances.