The Stratford Estate incurs a $25,000 legal fee in disposing of the decedent's real property. The executor can decide to claim a $5,000 deduction against the Federal estate tax and a $20,000 deduction on the estate's income tax return. a. True b. False If the unrelated business income of an exempt organization is $25,000 or less, the unrelated business income tax (UBIT) is $0. a. True b. False One-fourth of the Cruger Estate's distributable net income consists of net long-term capital gains. Thus, when income beneficiary Susie receives a $40,000 income distribution from the estate, $10,000 of it qualifies for the beneficial Federal income tax rate on long-term capital gains. a. True b. False Of the income received by the Atom Trust this year, 60% constituted municipal bond interest. Atom's trustee also made a $100,000 gift to the United Fund, a qualifying charity. The charitable deduction associated with this gift is limited to $60,000. a. True b. False The tax consequences to a donor of making a charitable contribution to a private foundation may be less favorable than the tax consequences to a donor of making a charitable contribution to a public charity. a. True b. False If an exempt organization conducts a trade or business that is regularly carried on by the organization when the business relates to the organization's exempt purpose, the organization is subject to the unrelated business income tax (UBIT). a. True b. False Cheng filed an amended return this year, claiming a refund relative to her tax computation on a prior- year return. When the IRS approves the amended return and issues the refund, it also pays Cheng interest with respect to the overpayment. a. True b. False