The Testa Trust was terminated this year and Chip, the beneficiary of the corpus, received all of the trust assets. The trust reported a $10,000 net operating loss; this was the only tax year in which the trust operated a business. Testa has one income beneficiary, Flo. As a result of these transactions:

a. Flo and Chip each report a $5,000 NOL on their Forms 1040.

b. Chip claims the $10,000 NOL on his Form 1040.

c. Flo claims the $10,000 NOL on her Form 1040.

d. The $10,000 NOL is lost forever.

Answer rating: 100% (QA)

Answer bChip claims the 10000 NOL on his Form ... View the full answer