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.

33. Which of the following statements is correct?

a. Estates unlike trusts, are not required to pay estimated income taxes.

b. Estates are not required to pay estimated income taxes on capital gain income.

c. Estates are not required to pay estimated income taxes in their first two years.

d. Estates are not required to pay estimated income taxes in their first two years if all income during the year consists of capital gain income and tax-exempt income.