The Doyle Trust Reports Distributable Net Income for the Year

question 143

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 $30,000 to Roger and $30,000 to Sally. After payment of 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 $25,000 to Sally. How much income from the trust must Sally recognize?

• A) $25,000.
• B) $30,000.
• C) $50,000.
• D) $55,000.

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Definitions:

Biases And Prejudices

Unjustified beliefs and attitudes towards individuals or groups based on stereotypes, often leading to unfair treatment.

Analyze

To examine in detail the structure of something, typically for purposes of explanation and interpretation.

Power Distance

A cultural dimension that describes the extent to which less powerful members within a society accept and expect power to be distributed unequally.

Decisions

The conclusion or resolution reached after consideration.