The Tom Trust requires that all trust income be distributed at least annually. There are no provisions for charitable contributions. To be treated as a simple trust, what must also be true?
A. Trust income can consist of interest and dividends only.
B. There were no distributions of corpus in the current year.
C. All beneficiaries must be U.S. citizens or resident aliens.
D. All of the answers are correct.
Answer: B. There were no distributions of corpus in the current year.
You might also like to view...
As a result of a physical inventory, Horace Company determined that it had inventory worth $320,000 at December 31, 2015. This count did not take into consideration the following facts: Bretton Consignment currently has goods worth $47,000 on its sales floor that belong to Horace but are being sold on consignment by Bretton. The selling price of these goods is $75,000. Horace purchased $22,000 of goods that were shipped on December 27, FOB Destination, that will be received by Horace on January 3. Determine the correct amount of inventory that Horace should report.
A. $367,000 B. $340,000 C. $320,000 D. $387,000
Children with muscular dystrophy who receive treatments developed through research programs funded by MDA represent ___________ for this charitable organization.
a) target publics b) target population c) general publics d) focus groups e) client publics