The Drabb Trust Owns a Plot of Business-Related Land,basis of $50,000,fair

question 126

Multiple Choice

The Drabb Trust owns a plot of business-related land,basis of $50,000,fair market value of $35,000.Drabb is subject to a 35% marginal income tax rate.Its sole beneficiary,Eddie,is subject to a 15% marginal income tax rate.Drabb's current-year distributable net income is $95,000.What is the most preferable action for the trustee of Drabb to take,considering only the related tax consequences?

• A)Distribute the land to Eddie and make a § 643(e) election.
• B)Distribute the land to Eddie and make no § 643(e) election.
• C)Sell the land to a third party.
• D)Neither sell nor distribute the land.

---

Definitions:

Wavelength

The distance from the peak of one light or sound wave to the peak of the next. Electromagnetic wavelengths vary from the short blips of cosmic rays to the long pulses of radio transmission.

Endocrine System

A collection of glands that produce hormones regulating metabolism, growth and development, tissue function, sexual function, reproduction, sleep, and mood, among other things.

Neurotransmitters

Chemical substances in the brain that transmit signals from one neuron to another across synapses, playing a crucial role in various functions and behaviors.

Physical Stress

A type of stress related to the body's physical state or the physical demands placed on it, such as illness or intense exercise.