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A Graduated Rate Estate Is a Testamentary Trust That Has

Question 42

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A graduated rate estate is a testamentary trust that has been designated as such in its first tax return. Which of the following statements is correct with respect to graduated rate estates?


A) Its taxation year must be the calendar year.
B) Its tax return is due 90 days after the trust's year end.
C) All of its income will be taxed at the highest federal rate of 33 percent.
D) It will not be eligible for a dividend tax credit on dividends received and retained in the trust.

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