Solved

A Trust Distributes 30% of Its Income to Mark and 20

Question 24

Multiple Choice

A trust distributes 30% of its income to Mark and 20% to Nancy. The remaining 50% is accumulated. The trust's depreciation is $1,000. The trust instrument is silent regarding the depreciation deduction. State law requires the depreciation be charged to principal. What part of the depreciation deduction will be allocated to Mark?


A) $0
B) $200
C) $300
D) $1,000

Correct Answer:

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