In relation to calculation of trust income which of the following statement is incorrect?

Select one:

None of these

Where the deductions exceed the assessable income, the loss is distributed among the beneficiaries or the trustee representing corpus

Both Australian and foreign source income and related deductions must be taken into account

The trustee is required to use generally accepted accounting principles

The character of a receipt for tax purposes cannot be determined by trust law or the terms of the trust deed