Which of the Following Statements Is Correct for Both Income

Multiple Choice

Which of the following statements is correct for both income trusts that are not specified investment flow-through trusts (i.e., not SIFTs) and mutual fund trusts?

A) Dividend income is grossed up before it is distributed to the unit holders.
B) All after tax distributions are treated as deemed eligible dividends.
C) Income earned by the trust is not subject to income tax within the trust if it is distributed to the unit holders.
D) If the distributions are a return of capital, the inclusion rate is 50 percent.