The Roz Trust Has Distributable Net Income for the Year

question 13

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 is required to distribute $30,000 to Roger and $60,000 to Sally.After payment of these amounts,the trustee is empowered to make additional distributions at its discretion.Exercising this authority,the trustee distributes an additional $40,000 to Roger,and $40,000 to Sally.How much income from the trust must Sally recognize?

• A)$70,000.
• B)$65,000.
• C)$60,000.
• D)$30,000.

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Definitions:

Recall

The process of retrieving information from memory without the aid of cues.

Retrieval

The location of stored information and its return to consciousness; the third stage of information processing.

Well-known Information

Facts, data, or knowledge that is widely recognized, familiar to many people, or commonly accepted.

Sensory Memory

The type or stage of memory first encountered by a stimulus; sensory memory holds impressions briefly, but long enough so that series of perceptions are psychologically continuous.