The Ulrich Trust Has Distributable Net Income (DNI) for the Year

question 56

Multiple Choice

The Ulrich Trust has distributable net income (DNI) for the year of $100,000 and no income from tax-exempt sources.Under the terms of the trust instrument, the trustee must distribute $60,000 to Roger and $60,000 to Sally.After paying these amounts, the trustee is empowered to make additional distributions at its discretion.Exercising this authority, the Ulrich trustee distributes an additional $15,000 to Roger and $15,000 to Sally.How much gross income from the trust must Roger recognize?

• A)$15,000.
• B)$50,000.
• C)$60,000.
• D)$75,000.

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