The trust agreement creating Trust X provides for all income of the trust to be distributed to the beneficiaries and requires a reserve equal to tax depreciation to be charged to income. If the trust has gross income of $30,000, expenses charged to income of $28,000, and depreciation of $3,000, how much depreciation can Trust X deduct?

A mutual fund is an organization that

A) invests its funds in securities issued by corporations and governments. B) is part of an insurance company that invests policyholders' premiums. C) a partnership of corporate investors. D) sets money aside to absorb potential stock market losses.

Which of the following best supports the idea that MNEs should remain in countries that allow child labor?

A) MNEs have a positive influence on government employment policies in most foreign countries. B) Many MNEs have substantially improved the working conditions of their foreign plants. C) MNEs are required to pay child workers more than local companies. D) Most MNEs employ local managers to handle cultural differences.