1. The _____ rule under the Uniform Principle and Income Act (UPIA) states that the trust should be taxed on the balance left over income, known as the net taxable income, after paying out the respective incomes to the beneficiaries.
caveat emptor
condominium
conduit
resulting trust
Clifford
2. Joe bought a share of stock for $47.50 that paid a dividend of $0.72 and sold one year later for $51.38. What was Joe's dollar profit or loss and holding period return?
$0.72, 7.55%
$3.88, 8.95%
$4.60, 9.68%
$3.88, 9.68%