In the current year a trust has distributable net income


Question - In the current year, a trust has distributable net income (DNI) of $30,000. During the year, the trust makes a mandatory distribution to Sarah of $5,000 and a discretionary distribution of $10,000 to Kyle. The trust has no tax-exempt income. The distribution deduction of the trust is

a. $30,000

b. $15,000

c. $10,000

d. $5,000

Solution Preview :

Prepared by a verified Expert
Accounting Basics: In the current year a trust has distributable net income
Reference No:- TGS02579488

Now Priced at $20 (50% Discount)

Recommended (96%)

Rated (4.8/5)