Question 1

The Rodriguez Trust generated $300,000 in alternative minimum taxable income (AMTI)  this year.Concerning the AMTI,the trust is subject to a marginal Federal income tax rate of:

Accepted Answer

A)  26%.
B)  28%.
C)  33%.
D)  35%.E) A) and B)
F) B) and C)

Question 2

The Code defines a "simple trust" as which of the following?

Accepted Answer

A)  One which is allowed to file Form 1041-EZ.
B)  One which has only one income beneficiary.
C)  One whose grantor was an individual who still is alive.
D)  One which must distribute its accounting income every year.E) All of the above
F) C) and D)

Question 3

The Crown Trust distributed one-half of its accounting income to Lee this year.Lee also is allocated one-half of Crown's credit for building low-income housing.

Accepted Answer

A) True 
 B)False

Question 4

The Brighton Trust has distributable net income for the year of $100,000 and no income from tax-exempt sources.Under the terms of the trust instrument,the trustee is required to distribute $25,000 to Roger and $50,000 to Sally.After payment of these amounts,the trustee is empowered to make additional distributions at its discretion.Exercising this authority,the Brighton trustee distributes an additional $20,000 to Roger,and $30,000 to Sally.How much income from the trust must Sally recognize?

Accepted Answer

A)  $80,000
B)  $65,000
C)  $50,000
D)  $30,000E) All of the above
F) C) and D)

Question 5

Tax planning motivations usually predominate over other objectives in deciding whether to create a trust.

Accepted Answer

A) True 
 B)False

Question 6

Judy can claim one-third of the Sweet Estate's cost recovery deductions,because she received one-third of the fiduciary's distributable net income (DNI).

Accepted Answer

A) True 
 B)False

Question 7

With respect to a trust,the terms creator,donor,and grantor are synonyms.

Accepted Answer

A) True 
 B)False

Exam 28: Income Taxation of Trusts and Estates

The Code defines a "simple trust" as which of the following?

Correct Answer
verified

Correct Answer
verified

Judy can claim one-third of the Sweet Estate's cost recovery deductions,because she received one-third of the fiduciary's distributable net income (DNI).

Correct Answer
verified

The Rodriguez Trust generated $300,000 in alternative minimum taxable income (AMTI) this year.Concerning the AMTI,the trust is subject to a marginal Federal income tax rate of:

Correct Answer
verified

The Crown Trust distributed one-half of its accounting income to Lee this year.Lee also is allocated one-half of Crown's credit for building low-income housing.

Correct Answer
verified

With respect to a trust,the terms creator,donor,and grantor are synonyms.

Correct Answer
verified

Tax planning motivations usually predominate over other objectives in deciding whether to create a trust.

Correct Answer
verified

Exam 28: Income Taxation of Trusts and Estates

The Code defines a "simple trust" as which of the following?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Judy can claim one-third of the Sweet Estate's cost recovery deductions,because she received one-third of the fiduciary's distributable net income (DNI).

Correct AnswerverifiedShow Answer

The Rodriguez Trust generated $300,000 in alternative minimum taxable income (AMTI) this year.Concerning the AMTI,the trust is subject to a marginal Federal income tax rate of:

Correct AnswerverifiedShow Answer

The Crown Trust distributed one-half of its accounting income to Lee this year.Lee also is allocated one-half of Crown's credit for building low-income housing.

Correct AnswerverifiedShow Answer

With respect to a trust,the terms creator,donor,and grantor are synonyms.

Correct AnswerverifiedShow Answer

Tax planning motivations usually predominate over other objectives in deciding whether to create a trust.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
verified

Correct Answer
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