Al Smith settled a trust in favour of his two children on May $1,2023.$ He settled the trust with marketable securities worth $$50,000.$ His adjusted cost base for the marketable securities was $$20,000.$ Al$,$ his wife, and a family friend were named as trustees. His two children are ages five and six. Which one of the following statements is FALSE?

Al can defer the recognition of the capital gain on the transfer of the securities to the trust.

Income in the trust will be subject to a $33\%$ federal rate of tax.

The trust is entitled to a deduction in computing its income for amounts paid to the children during the year.

The tax return for the first year of the trust is due March $31,2024.$