One-fourth of the Cruger Estate's distributable net income consists of net long-term capital gains.Thus,when income beneficiary Susie receives a $40,000 income distribution from the estate,$10,000 of it qualifies for the 15%/20% tax rate.

Question

Quizplus · Accepted Answer

Since one-fourth of the distributable net income consists of net long-term capital gains and Susie received a $40,000 income distribution from the estate, $10,000 of it qualifies for the lower tax rate of 15%/20%. Therefore, the statement is true.

One-Fourth of the Cruger Estate's Distributable Net Income Consists of Net