QUESTION 3

Trust B has $10,000 of net rental real estate income, a stock dividend of $5,000, and tax prep fees of $1,000. Trust B is a simple trust. Based on this information, what is the NDI of this trust?

		$10,000
		$9,500
		$9,000
		$14,000

QUESTION 4

Trust B has $10,000 of net rental real estate income, a stock dividend of $5,000, and tax prep fees of $1,000. Trust B is a simple trust. Based on this information, what is the taxable income of this trust?

		$9,500
		$4,500
		$14,000
		$5,000

QUESTION 5

A simple trust must distribute all income during the taxable year to the income beneficiary.

True

False