Which of the following statements is not a characteristic of DNI (distributable net income) ?
A) DNI can be composed of both nontaxable and taxable amounts of income.
B) Any trust taxable income allocable to corpus under state law is not included in DNI.
C) In computing DNI, no deduction for a personal exemption is allowed.
D) DNI is the amount of fiduciary accounting income that the trustee may distribute under the terms of the governing instrument.
Correct Answer:
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