The Doyle Trust Reports Distributable Net Income for the Year

question 53

Multiple Choice

The Doyle Trust reports distributable net income for the year of $100,000 and no income from tax-exempt sources. Under the terms of the trust instrument, the trustee must distribute $20,000 to Roger and $20,000 to Sally. After paying these amounts, the trustee is empowered to make additional distributions at its discretion. Exercising this authority, the trustee distributes an additional $25,000 to Roger and $50,000 to Sally. How much gross income from the trust must Sally recognize?

• A) $70,000
• B) $60,000
• C) $40,000
• D) $20,000

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Definitions:

Logic Model

A systematic and visual way to present the relationship between the resources, activities, outputs, and expected outcomes of a program or project.

Financial Management

The strategic planning, directing, monitoring, organizing, and controlling of the monetary resources of an organization.

Statistical Benchmarking

The process of comparing processes, performance metrics, or outcomes against recognized standards, typically using statistical methods.

Comparative Performance Measurement

The process of evaluating the efficiency and effectiveness of an organization by comparing its outcomes with those of similar organizations.