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Which of the following statements concerning the taxation of estates and trusts is (are) correct?
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.
A . only
B . II only
C . Both l and lI
D . Neither I nor II
Answer: B
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