The Uldis Trust Has Distributable Net Income (DNI) for the Year

question 87

Multiple Choice

The Uldis Trust has distributable net income (DNI) for the year of $100,000 and no income from tax-exempt sources. Under the terms of the trust instrument, the trustee must distribute $75,000 to Roger and $75,000 to Sally. After paying these amounts, the trustee is empowered to make additional distributions at its discretion. Exercising this authority, the Uldis trustee distributes an additional $10,000 to Roger and $30,000 to Sally. How much gross income from the trust must Roger recognize?

• A) $10,000
• B) $50,000
• C) $75,000
• D) $85,000

---

Definitions:

Month Of Sale

The specific month in which a sale is recognized or recorded in financial statements, often important for reporting and analysis purposes.

Budgeted Unit Sales

The projected quantity of units that a company plans to sell within a specific period, as part of its financial and operational planning.

Cash Collections

The process of receiving and processing payments from customers, typically involving invoices and receipts.

Selling Price

The amount of money charged for a product or service, or the sum a seller takes into consideration when selling an asset.