In Reference to Estate Principal and Income,which of the Following

question 6

Multiple Choice

In reference to estate principal and income,which of the following statements is correct?

• A)A primary reason for dividing estate principal and estate income is that the beneficiaries are often different.
• B)In accounting for the decedent's estate,the receipts earned but not yet received at the date of death are considered estate income.
• C)After death,earnings from income-producing property owned at the time of death are considered estate principal.
• D)Expenses incurred after death to administer the estate are first charged against income earned after death.

---

Definitions:

Tax Compliance

The act of following and meeting all statutory responsibilities in tax reporting, payment, and documentation by individuals or entities.

Excess Burden

The cost to society created by market inefficiency, often associated with government intervention or taxation that distorts market equilibrium.

Personal Income Tax

A tax levied on individuals or households based on their total earned income from various sources.

Earners

Individuals or entities that receive income through work, investment, or other means within an economic system.