A trust has net accounting income of $15,000. In addition, the trust has a $10,000 capital gain, which is not included in net accounting income. The trust is required to distribute the trust income to the beneficiary. The beneficiary will receive
A)$10,000.
B)$15,000.
C)$24,700.
D)$25,000.

Question

Quizplus · Accepted Answer

The beneficiary will receive $15,000, which is the net accounting income of the trust. Capital gains are typically not considered part of the distributable net income unless specified otherwise in the trust agreement or by law.

A Trust Has Net Accounting Income of $15,000