Question 1

For each of the following independent statements, choose the best answer.
-The entity has a legal identity separate from its beneficiaries.

Accepted Answer

A)  Tax attribute of complex trusts only
B)  Tax attribute of estates only
C)  Tax attribute of estates and complex trusts
D)  Tax attribute of neither estates nor complex trustsE) All of the above
F) A) and B)

Question 2

The Chen Trust is required to distribute its accounting income every year, one-half to Missy Chen, and one-half to the local church's homeless shelter. What is the Chen Trust's personal exemption?

Accepted Answer

A)   $0
B)   $100
C)   $300
D)   $600E) B) and C)
F) A) and D)

Question 3

If provided for in the controlling agreement, a trust might terminate when the income beneficiary reaches age 35.

Accepted Answer

A) True 
 B)False

Question 4

Which of the following is a typical duty of a trustee?

Accepted Answer

A)   Modify the language of the trust instrument so as to lower the entity's Federal income tax.
B)   Make decisions as to how to invest the trust corpus portfolio.
C)   Allocate items between income and corpus using Subchapter J rules.
D)   All of these.E) B) and D)
F) All of the above

Question 5

For each of the following independent statements, choose the best answer.
-The entity's AMT preferences and adjustments pass through to the income beneficiaries.

Accepted Answer

A)  Tax attribute of complex trusts only
B)  Tax attribute of estates only
C)  Tax attribute of estates and complex trusts
D)  Tax attribute of neither estates nor complex trustsE) All of the above
F) A) and B)

Question 6

The trust usually makes a distribution to the income beneficiaries in the amount of its fiduciary
____________________ income.

Accepted Answer

The answer of The trust usually makes a distribution to...

Exam 20: Income Taxation of Trusts and Estates

The Chen Trust is required to distribute its accounting income every year, one-half to Missy Chen, and one-half to the local church's homeless shelter. What is the Chen Trust's personal exemption?

Correct Answer
verified

For each of the following independent statements, choose the best answer. -The entity's AMT preferences and adjustments pass through to the income beneficiaries.

Correct Answer
verified

The trust usually makes a distribution to the income beneficiaries in the amount of its fiduciary ____________________ income.

Correct Answer
verified

Which of the following is a typical duty of a trustee?

Correct Answer
verified

If provided for in the controlling agreement, a trust might terminate when the income beneficiary reaches age 35.

Correct Answer
verified

For each of the following independent statements, choose the best answer. -The entity has a legal identity separate from its beneficiaries.

Correct Answer
verified

Exam 20: Income Taxation of Trusts and Estates

The Chen Trust is required to distribute its accounting income every year, one-half to Missy Chen, and one-half to the local church's homeless shelter. What is the Chen Trust's personal exemption?

Correct AnswerverifiedShow Answer

For each of the following independent statements, choose the best answer. -The entity's AMT preferences and adjustments pass through to the income beneficiaries.

Correct AnswerverifiedShow Answer

The trust usually makes a distribution to the income beneficiaries in the amount of its fiduciary ____________________ income.

Correct AnswerverifiedShow Answer

Which of the following is a typical duty of a trustee?

Correct AnswerverifiedShow Answer

If provided for in the controlling agreement, a trust might terminate when the income beneficiary reaches age 35.

Correct AnswerverifiedShow Answer

For each of the following independent statements, choose the best answer. -The entity has a legal identity separate from its beneficiaries.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified