Which of the following is true regarding depreciation on a trust? A. It is allocated in its entirety to an income beneficiary and reported on Schedule K-1 B. It is allocated in its entirety to the trust on Form 1041. C. It is allocated to the trust up to the amount of any reserve for depreciation for trust purposes established by the trustee under the terms of the trust or applicable law. It is allocated solely based on the ratio of trust income allocable to the beneficiaries compared to that retained by the trust. D