Identify which of the following statements is true.
A) Tax- exempt income is allocated among beneficiaries in the proportion that total tax- exempt income bears to total distributable net income (DNI) .
B) Under the tier system, tier- 2 beneficiaries are the first to absorb income.
C) Both income required to be distributed currently and discretionary income distributions are included in tier- 1 distributions.
D) All of the above are false.
Correct Answer:
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