The Ulrich Trust Has Distributable Net Income (DNI) for the Year

question 56

Multiple Choice

The Ulrich Trust has distributable net income (DNI) 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 $15,000 to Roger and $15,000 to Sally.How much gross income from the trust must Roger recognize?

• A)$15,000.
• B)$50,000.
• C)$60,000.
• D)$75,000.

---

Definitions:

Inherited

Traits or properties passed down from parents to their offspring through genes.

Transgenic Organisms

Organisms that have had genes from another species inserted into their genetic code, resulting in new traits or characteristics.

Ring Spot Virus

A plant pathogenic virus causing ring spot symptoms on the leaves of affected plants, leading to reduced growth and yield.

Papaya Industry

The sector of agriculture and commerce dedicated to the cultivation, processing, and distribution of papayas, including production of fruit, seeds, and derived products.