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:

Darwin's Ideas

Refers to Charles Darwin's theories, particularly on natural selection and evolution, explaining the diversity of life on Earth.

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A global conflict that took place from 1939 to 1945, involving most of the world's nations and resulting in significant military and civilian casualties.

Dispositions

Consistent preferences, ways of thinking, and behavioral tendencies that manifest across varying situations and over time.

Core Attitudes

Fundamental beliefs or feelings that guide behavior and influence how individuals perceive and interact with the world around them.