Prue Dence created an inter vivos trust to hold investments on behalf of her family The Dence Discretionary Trust The trust deed specifies that trust net income is to be distributed as follows Beneficiary Entitlement of Trust Net Income Derek (husband aged 47, under medical supervision and mentally incompetent) 20 Fairleigh (daughter aged 19, studying full time) 20 Sophia (daughter aged 17, employed full time at Myer) 20 Libbie (daughter aged 15, attends high school) 20 The remaining 20 is to be retained or distributed at the discretion of the Trustee The Trust Deed allows the distribution of capital gains in the same proportion as other income During the year ended 30 June 2020, the Trust had the following transactions RECEIPTS $ Franked Dividends from shares 84,000 Interest from Term Deposits 135,000 Proceeds from sale of shares in Westpac Ltd on 15 May 2015 91,000 PAYMENTS $ Tax Agent's Fee 2,500 Payments to Fairleigh to purchase a car 8,500 Funds transferred to savings account to be held for Sophia and Libbie to purchase when and if they turn 19 17,000 The shares in Westpac were purchased in 2002 at a cost of $61,000 Required Calculate trust net income Prepare a schedule specifying for below beneficiaries in receipt of trust income whether or not the beneficiary is presently entitled whether or not the beneficiary is under a legal disability which section(s) of the act apply to make the income assessable who is assessed on each amount the amount distributed to the beneficiary Calculate the tax payable by the trustee Calculate the tax payable by Sophia (Sophia received gross salary of $32,000 from which $6,000 PAYG was withheld she also had a capital loss of $800 from shares that she had sold in an earlier year)

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Prue Dence created an inter-vivos trust to hold investments on behalf of her family - The Dence Discretionary Trust. The trust deed specifies that trust

Prue Dence created an inter-vivos trust to hold investments on behalf of her family - The Dence Discretionary Trust. The trust deed specifies that trust net income is to be distributed as follows:

Beneficiary	% Entitlement of Trust Net Income
Derek (husband aged 47, under medical supervision and mentally incompetent)	20
Fairleigh (daughter aged 19, studying full-time)	20
Sophia (daughter aged 17, employed full-time at Myer)	20
Libbie (daughter aged 15, attends high school)	20

The remaining 20% is to be retained or distributed at the discretion of the Trustee.

The Trust Deed allows the distribution of capital gains in the same proportion as other income.

During the year ended 30 June 2020, the Trust had the following transactions:

RECEIPTS	$
Franked Dividends from shares	84,000
Interest from Term Deposits	135,000
Proceeds from sale of shares in Westpac Ltd on 15 May 2015 *	91,000

PAYMENTS	$
Tax Agent's Fee	2,500
Payments to Fairleigh to purchase a car	8,500
Funds transferred to savings account to be held for Sophia and Libbie to purchase when and if they turn 19.	17,000

*The shares in Westpac were purchased in 2002 at a cost of $61,000.

Required:

Calculate trust net income
Prepare a schedule specifying for below beneficiaries in receipt of trust income:

whether or not the beneficiary is presently entitled.
whether or not the beneficiary is under a legal disability.
which section(s) of the act apply to make the income assessable.
who is assessed on each amount.
the amount distributed to the beneficiary.
1. Calculate the tax payable by the trustee.
2. Calculate the tax payable by Sophia.

(Sophia received gross salary of $32,000 from which $6,000 PAYG was withheld; she also had a capital loss of $800 from shares that she had sold in an earlier year)