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32. Which of the following statements is incorrect? a. The taxation of trusts and estates is governed by Subchapter J of the Internal Revenue Code.

32. Which of the following statements is incorrect?

a. The taxation of trusts and estates is governed by Subchapter J of the Internal Revenue Code.

b. Form 1041 illustrates the semi-conduit theory of income taxation since all taxable income received by a trust or estate is taxed to the beneficiaries.

c. The income tax rates applied to trusts and estates are highly compressed compared to income tax rates for individuals.

d. When Shirley died, her estate included 200 shares of Stock in Corporation. On the date of her death the highest price the Stock traded for was $80 and the lowest price was $72. The estate tax date of death value for the Stock in Corporation is $15,200.

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