One-fourth of the Cruger Estate's distributable net income consists of net long-term capital gains. Thus, when income beneficiary Susie receives a $40,000 income distribution from the estate, $10,000 of it qualifies for
the beneficial Federal income tax rate on long-term capital gains.

Question

Quizplus · Accepted Answer

Since one-fourth of the estate's distributable net income is net long-term capital gains, $10,000 of Susie's $40,000 distribution would be considered long-term capital gains and qualify for the beneficial tax rate.

One-Fourth of the Cruger Estate's Distributable Net Income Consists of Net