The Suarez Trust Generated Distributable Net Income (DNI) This Year

question 30

Multiple Choice

The Suarez Trust generated distributable net income (DNI) this year of $150,000, two-thirds of which was portfolio income, and the balance of which was exempt interest. Under the terms of the trust, Clara Suarez is to receive an annual income distribution of $30,000. At the discretion of the trustee, additional distributions can be made to Clara or to Clark Suarez III. This year, the trustee's distributions to Clara totaled $60,000. Clark received $90,000. How much of the trust's DNI is assigned to Clara?

• A) $75,000
• B) $60,000
• C) $45,000
• D) $30,000

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Definitions:

Salespeople Ranking

The process of evaluating and ordering sales staff according to their sales performance or achievements.

Norm-Referenced Appraisals

Employee evaluation method comparing an individual's performance against that of their peers, rather than on a set of absolute criteria.

Straight-Ranking

A method of performance evaluation where employees are compared to each other and ranked in a simple list format.

Forced Distribution

A performance management system where employee evaluations are distributed along a bell curve, forcing rankings among an employee population.