The Roz Trust Has Distributable Net Income for the Year

question 28

Multiple Choice

The Roz Trust has distributable net income for the year of $100,000 and no income from tax-exempt sources. Under the terms of the trust instrument, the trustee must distribute $30,000 to Roger and $30,000 to Sally. After paying these amounts, the trustee is empowered to make additional distributions at its discretion. Exercising this authority, the trustee distributes an additional $10,000 to Roger and $30,000 to Sally. How much gross income from the trust must Sally recognize?

• A) $80,000.
• B) $60,000.
• C) $50,000.
• D) $20,000.

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Definitions:

Visual Preference

The tendency to selectively pay attention to certain visual stimuli over others, based on interest or attraction.

Auditory Preferences

The tendency or inclination people have towards specific types of sounds or music.

Cross-model Transference

The phenomenon where skills or responses learned in one context or with one set of stimuli are transferred to another context or stimuli.

Polymodal Attention

The ability to direct attention to information presented simultaneously in different forms, such as visual and auditory.