The Ellie Trust, a Calendar Year Entity, Wants to Make

question 39

Multiple Choice

The Ellie Trust, a calendar year entity, wants to make a gift to a charity that is deductible on its year 1 Form 1041. The gift must be made by Ellie:

• A) During year 1.
• B) During year 1 or 2.
• C) On or before April 15, year 2.
• D) On or before September 30, year 2.

---

Definitions:

Annual Dividend

The total dividend payment a company makes to its shareholders in a year.

Dividend Growth Model

A valuation method used to estimate the value of a stock based on its expected future dividend payments and growth rate.

Dividends

Payments made by a corporation to its shareholders, typically from profits, as a distribution of earnings.

Required Return

The minimum expected return an investor demands for holding a particularly risky investment.