The Nordberg Family Trust is an intervivos discretionary trust with three beneficiaries Artemis, Bosco, and Cadwallender. Artemis is 22 years old and not under any legal disability. Bosco is 17 years old and is at school full time 15 points Save Asover. Cadwallender is 70 years old and is insane. He has been placed in a secure care facility. trust, if any. The trust deed defines the income of the trust to be the same as the net income calculated under the tax rules. According to the trust deed, Artemis and Bosco are each entitled to 20% of the income from the Cadwallender is entitled to 55% of the income of the trust, if any, and have no interest or rights to capital receipts or to the trust capital (corpus). Additional information In the 2022/23 income year, the total assessable income of the trust through its trading activities is $225 000. The allowable deductions of the trust are $80 000. All the deductions relate to trading activities. 1. A $ 500,000 loan was taken out on 1/7/20 for 7 years. $ 400,000 was utilized in the business and the remainder was used to renovate the beneficiaries' private houses, No income-producing activities take place at the houses. An interest of $18500 was charged on the loan for the 2022/23 financial year. 2. The borrowing costs when the loan was entered into amounted to $17500. 

Required 

a) Calculate the s95 net income of the trust (6 marks) 

b) Determine the amounts distributed to the beneficiaries and identify who has the tax liability (6 marks) 

c) Calculate the tax payable by the trustee (3 marks)

Answer rating: 100% (QA)

a To calculate the s95 net income of the trust you start with the total assessable income and subtra... View the full answer