To Reduce Trustee Commissions, the Sigrid Trust Is Operated as Though

question 115

Multiple Choice

To reduce trustee commissions, the Sigrid Trust is operated as though it were two trusts (i.e., with 70-year-old Grandma and 7-year old Skippy each holding equal shares) .This year the trust generated distributable net income (DNI) of $80,000.The Sigrid trustee distributed $100,000 to Grandma this year: $40,000 as her one-half share of the entity's income, and $60,000 as a distribution of principal.Skippy received no distribution. How much of the year's distributable net income is assigned to Grandma?

• A)$40,000.
• B)$50,000.
• C)$80,000.
• D)$100,000.

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Definitions:

Siphons Sugars

A process involving the transport of sugars, typically within plants, from sources of production to storage or use sites.

Infects Trees

A term referring to pathogens, such as bacteria, fungi, or viruses, that invade and cause diseases in tree species.

Button Mushroom

A common edible mushroom, Agaricus bisporus, characterized by a round, white cap and short stem, widely cultivated for food.

Edible Fruiting Body

The spore-producing part of a fungus that is safe and nutritious for consumption.