Last year, Scotty Mossop transferred investments that pay interest of $120,000 per annum to a family trust where the

beneficiaries of the trust are Scottys's spouse, Rylee and their two children, Ricky-Bobby (15 years old) and Dave (21

years old).The beneficiaries have no income other than that from the trust.The trust income and capital gains are

allocated to the two kids and to his spouse, paid out to each beneficiary during the year. Total interest income earned

by the trust during the year was $120,000.As well, a taxable capital gain of $36,000 was realized on the trust's disposition

of one of the bonds that Scotty transferred into the trust.

Required: Determine the effect the trust income will have on the Taxable Income of Scotty (settlor).