The Yellow Trust Incurred $10,000 of Portfolio Income

question 104

Multiple Choice

The Yellow Trust incurred $10,000 of portfolio income. Its corporate trustee paid fiduciary fees of $1,000 therefrom. Yellow's accounting income is distributed as follows:
∙ $5,000 to income beneficiary Larry.
∙ $4,000 to pay part of the high school tuition bills for Carrie, the daughter of Yellow's grantor Marcia. How much gross income does Marcia include with respect to these trust activities?

• A) $0
• B) $4,000
• C) $9,000
• D) $10,000

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Definitions:

Randomly

Without method or conscious decision, in a way that appears unsystematic.

Reflective Judgment

The process of critically evaluating the validity of various claims and evidence before forming a conclusion.

Variety of Sources

Refers to obtaining information, materials, or data from multiple and diverse origins or points of origin.

Opinions

Personal views, judgments, or beliefs about a particular topic, which can vary widely between individuals.