Your client, Frederick, established an inter vivos trust last year. This year, the trust has received $1,500 interest income, and $8,700 dividends. Frederick is meeting with you for an investment review, and wants to better understand the tax obligations and reporting requirements regarding the trust. What should you tell Frederick?

		The trust is not eligible for the dividend gross-up and corresponding dividend tax credit (DTC)
		The trust will have all retained investment income taxed at the top marginal tax rate
		The trust must distribute the interest income before December 31
		The trust must use either the cash method or receivable method of reporting interest income