ABC had the following income and expenses for the year ended 30 June CY and...
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Accounting
ABC had the following income and expenses for the year ended 30 June CY and classified as an SBE
Interest $32,000
Net rental income $8,000
Trading income $80,000
Trading expenses $4,000
There are 4 beneficiaries
Ann (55) who is absolutely entitled to one quarter of the trust income
Jenny (21) who is absolutely entitled to one quarter of the trust income
Rex (16) who is absolutely entitled to one quarter of the trust income
Rachel (14) one-quarter of the trust income was to be accumulated until Rachel turns 18
The trustee has discretion to pay for his education out of his share. In the event If his death before that date, the accumulated funds are to be distributed equally among the other beneficiaries
The trustee exercises her discretion and pay Rachels school fee of $12,000
Ann has loss from her business of $500
Jenny also has a rental property. Net rent for the year was $6000
Rex earn $15000 salary from a holiday job and $200 interest income from money invested in her name by her father
Calculate the net income of the trust and the net tax payable by either the trustee or the beneficiaries. State the sections under which the income is assessed
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