Which of the Following Statements Best Describes Income Trusts

Multiple Choice

Which of the following statements best describes income trusts?

A) As income trust cash distributions are taxed at each unitholder's full tax rate, a higher tax liability results.
B) The administrative costs can be higher with an income trust structure relative to a corporate counterpart.
C) Income trust units cannot be held as equity securities.
D) Cash flows distributed to unitholders are paid after the corporate taxes.