All the following statements concerning the kiddie-tax rules are correct EXCEPT:

(A) The rules are promulgated to curtail the shifting of income from high-tax-bracket parents to the lower-tax-bracket children.

(B) The rules are limited to trust income received by a child from trusts established by the childs parents or grandparents.

(C) A standard deduction applies to a portion of the childs unearned income.

(D) The rules provide for the taxation of a childs net unearned income at the parents highest marginal tax rate.

Provide a detailed explanation for your answer. Only answer if you have a strong estate planning background.