Which of the Following Statements Is True Concerning Federal Income

Which of the following statements is true concerning federal income tax laws and estates?

A) Estates are subject to estate taxes and, therefore, exempt from income tax.
B) The income tax on the earnings from an estate is levied only on the beneficiary.
C) The income tax on the earnings from an estate is levied only on the estate.
D) The income tax on the earnings from an estate is levied either on the estate, if accumulated, or the beneficiary.