An interest in possession trust with one life tenant has the following income in 2020-21:

(a) Compute the trustees' income tax liability for 2020-21.

(b) How much income does the life tenant receive from the trust in 2020-21 and how will this be treated in his or her personal tax computation?

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Rents receivable Loan interest received (net) Dividends received Expenses were incurred in the year as follows: Property expenses Administration expenses 30,200 7,200 1,600 6,900 2,120