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.

Describe the main areas of interest for cognitive psychologists.

Explain the study of human personality by personality psychologists.

Understand the application of psychological principles in educational settings.

Associate clinical psychology with the study and treatment of psychological disorders.

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Definitions:

Accumulated Depreciation

The total amount of depreciation expense that has been recorded for an asset since it was acquired.

Fair Value

The estimated market value of an asset or liability, reflecting what a willing buyer would pay a willing seller in an arm's length transaction.

Salary Allowance

An agreed amount of money paid regularly to an employee on top of their salary for specific purposes, such as travel or housing.

Expired Insurance

The portion of an insurance premium that represents coverage for a past period.