Which, If Any, of the Following Statements Relates to the Tax

question 41

Multiple Choice

Which, if any, of the following statements relates to the tax treatment of both estates and trusts?

• A)The entity is required to distribute all of its income currently to its beneficiaries.
• B)The entity must use the same tax year as its creator (i.e., grantor, decedent).
• C)In the year of its termination, the entity's net operating loss carryovers are passed through to its beneficiaries.
• D)The termination date of the entity is specified in the controlling document.

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Definitions:

PE Ratio

Price-to-Earnings Ratio is a measure that compares a company's current share price to its per-share earnings.

Stock Price

The cost of purchasing one share of a company's stock.

Investment Activity

Transactions involving the purchase and sale of long-term assets and other investments not generally considered cash equivalents or traded in active markets.