The Ulrich Trust Has Distributable Net Income for the Year

question 103

Multiple Choice

The Ulrich Trust has 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 $60,000 to Roger and $60,000 to Sally.After paying these amounts, the trustee is empowered to make additional distributions at its discretion.Exercising this authority, the Ulrich trustee distributes an additional $20,000 to Roger and $20,000 to Sally.How much gross income from the trust must Sally recognize?

• A)$80,000.
• B)$60,000.
• C)$50,000.
• D)$20,000.

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Definitions:

Taxes

Compulsory financial charges or some other type of levy imposed upon a taxpayer by a governmental organization.

Net Advantage

This term could be referring to various contexts and does not have a widely recognized specific financial definition without more context. NO.

Leasing

The process of renting an asset, such as equipment or property, for a specified period of time.

NPV

Net Present Value (NPV) is a method used to evaluate the profitability of an investment, calculating the difference between the present value of cash inflows and outflows.