American College Exam HS330 Topic 2 Question 96 Discussion

Actual exam question for American College's HS330 exam

Question #: 96
Topic #: 2

[All HS330 Questions]

Which of the following statements concerning the taxation of estates and trusts is (are) correct?

l. They are taxed similarly to partnership entities.

II. They are taxed on distributable net income (DNI) that is retained.

Aonly

BII only

CBoth l and lI

DNeither I nor II

Show Suggested Answer

Suggested Answer: A

by Pearlie at Sep 09, 2024, 01:13 PM

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Zack

3 days ago

Wait, are we supposed to remember the tax rules for estates and trusts? I thought this was an exam on something else entirely!

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Shawana

7 days ago

Hmm, I think the key is understanding the concept of distributable net income. That's got to be the correct answer.

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Nichelle

13 days ago

Why do you think that? I thought estates and trusts are taxed similarly to partnership entities.

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Dana

16 days ago

I'm pretty sure estates and trusts are taxed differently from partnerships. This seems like a tricky one.

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Chantay

3 days ago

A) only

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Cordelia

17 days ago

I disagree, I believe the answer is B) II only.

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Nichelle

18 days ago

I think the correct answer is C) Both l and II.

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