In which of the following situations will the grantor trust rules apply?

A. The trust is revocable and mandates the distribution of income to the named beneficiary.
B. The trust is irrevocable, the income must be paid out currently, and the trust assets will revert to the grantor at the end of nine years.
C. The trust is irrevocable, and the trustee, who is also the grantor, has the power to distribute or accumulate income for the named beneficiary.
D. The grantor trust rules will apply in each of the situations.


Answer: D

Business

You might also like to view...

Money whose value is determined by its value as a material is referred to as?

A. inside money. B. outside money. C. commodity money. D. artificial money.

Business

________ rules require that employees who join the union remain members for a certain period of time but do not require a union membership.

A. Agency shop B. Closed shop C. Union shop D. Maintenance of membership E. Checkoff provision

Business

On April 1, Snell Company made a $50,000 sale giving the customer terms of 3/10, n/30. The receivable was collected from the customer on April 8. How does the collection of cash from the customer affect the company's financial statements? Assets=Liab.+Stk.EquityRev.-Exp.=Net Inc.Stmt ofCash FlowsA.(1,500)=NA+(1,500)(1,500)-NA=(1,500)48,500 OAB.(1,500)=NA+(1,500)(1,500)-NA=(1,500)NAC.(1,500)=NA+(1,500)NA-(1,500)=5001,500 OAD.48,500=NA+48,50048,500-NA=48,50048,500 OA

A. Option A B. Option B C. Option C D. Option D

Business

Attractive opportunities for a particular firm are those that the firm has some chance of doing something about-given its resources and objectives.

Answer the following statement true (T) or false (F)

Business