QUESTION 16

1. Larry is the trustee of a discretionary trust.

   The trust deed states that the primary beneficiaries of the trust are Curly (19 years old) and Mo (15 years old).

   For the year ended 30 June 2020, the trust received fully franked dividends of $100,000, interest income of $10,000 and incurred bank fees of $1,000.

   The beneficiaries are presently entitled but Mois under a legal disability.

   What is the net income of the trust?

   		$151,857
   		$109,000
   		Nil as the income can be distributed to the beneficiaries
   		$110,000