Assume that this year John Smith makes a non-interest bearing loan of $1,000 to a trust. The trust acquires a $1,000 bond. The trust has four equal beneficiaries: Betty Smith, John’s wife, and their three children, one of whom is under 18. The income of the trust for the year prior to claiming any deductions for amounts paid or payable to the beneficiaries is $240 of which $100 is interest from the bond. All income is payable to the beneficiaries.

REQUIRED

How much income is attributed to John Smith in the year?