For each of the following independent statements, choose the best answer.
-Distributable net income is used to account for the entity's distributions to its beneficiaries.

Question

Quizplus · Accepted Answer

Distributable Net Income (DNI) is a tax concept used to allocate income between estates or trusts and their beneficiaries. It applies to both estates and complex trusts, determining how much of the entity's income is taxable to the entity itself and how much is taxable to the beneficiaries.

For Each of the Following Independent Statements, Choose the Best