This Year, the Nano Trust Reported $50,000 Entity Accounting Income

question 153

Multiple Choice

This year, the Nano Trust reported $50,000 entity accounting income and $40,000 distributable net income (DNI) . Nano distributed $30,000 cash to Horatio, its sole income beneficiary. Nano is a complex trust. Nano's distribution deduction is:

• A) $50,000.
• B) $40,000.
• C) $30,000.
• D) $0. Because the distributions of a complex trust are discretionary, no deduction is allowed.

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Definitions:

Valid Deductive Argument

A logical argument where, if the premises are true, the conclusion necessarily follows, ensuring its validity.

Conclusion

The proposition in an argument that is supported on the basis of other propositions.

Definitional Premises

Statements or assertions used in arguments that provide the meaning or explanation of terms used within the argument.

Analogies

Comparisons made between two things that are alike in some respects, often used to explain or argue.