Identify Which of the Following Statements Is True

Identify which of the following statements is true.

A) The income received by the beneficiaries of the trust loses its character once it is distributed.
B) Capital losses remaining in the final year of a trust do not pass through to the beneficiaries succeeding to the trust property.
C) Beneficiaries of simple trusts are taxed currently on their pro rata share of taxable distributable net income (DNI) regardless of the actual amount distributed to them during the period.
D) All of the above are false.