The Raven Trust Was Terminated This Year and David, the Beneficiary

question 61

Multiple Choice

The Raven Trust was terminated this year and David, the beneficiary of the corpus, received all of the trust assets.The trust had a $10,000 net operating loss; this was the only tax year in which the trust operated a business.The entity has one income beneficiary, Flo.As a result of these transactions:

• A)Flo claims the $10,000 NOL on her Form 1040.
• B)David claims the $10,000 NOL on his Form 1040.
• C)Flo and David each report a $5,000 NOL on their Forms 1040.
• D)The $10,000 NOL is lost forever.

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Definitions:

Biodiversity

The variety and variability of life on Earth, including diversity within species, between species, and of ecosystems.

Species Variation

Genetic differences both within and between populations of species, contributing to the diversity of organism traits.

Ecosystems

Communities of living organisms in conjunction with the nonliving components of their environment, interacting as a system.

Scientific Method

Process by which scientists formulate a hypothesis, gather data by observation and experimentation, and come to a conclusion.