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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Mira

2 months ago

Seriously, who came up with these exam questions? They're probably just trying to trip us up. I'm going with 'neither' and hoping for the best.

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Selma

4 days ago

I agree, these questions are tricky. I'll go with 'neither' as well.

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Brock

5 days ago

I'm not sure, but I'm leaning towards 'II only'.

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Laquita

1 months ago

I think I'll go with 'Both l and lI' just to be safe.

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Zack

2 months 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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Vicente

9 days ago

User 4: No, just focus on the information provided in the question.

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Sheron

14 days ago

User 3: So, we don't have to remember the tax rules for estates and trusts?

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Ernie

29 days ago

User 2: I agree, they are taxed on distributable net income that is retained.

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Keneth

1 months ago

User 1: I think the correct answer is B) II only.

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Shawana

2 months 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

2 months ago

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

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Dana

2 months ago

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

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Antonio

24 days ago

I agree, they are taxed on distributable net income (DNI) that is retained.

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Melodie

1 months ago

B) II only

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Douglass

1 months ago

I think it's A) only because estates and trusts are not taxed similarly to partnership entities.

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Chantay

2 months ago

A) only

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Cordelia

2 months ago

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

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Nichelle

2 months ago

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

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