Question:Question 1: Hadrian Trust is a resident discretionary inter-vivos trust carrying on retail trading activities. During the 2014/2015 income year the trust made a loss of $10,000 calculated in accordance with s 95(1)ITAA1936. Hadrian Trust has performed better in 2015/2016, with income of Hadrian Trust

comprising:

1. Profit from the business activities =$55,000
2. Interest on term deposit =$5,000
3. Fully franked dividend (with imputation credit of $3,000) =$7,000

During the 2015/2016 income year, tax deductible business expenses of $9,000

were incurred.

The trustee has exercised discretion to make the following payments to beneficiaries

who all have a vested interest in the income of the trust:

1. Jillian, aged 68, who suffers dementia and is unable to give discharge to a legal contract = 25% of trust net income
2. Dimitri, aged 63 =25% of trust net income
3. Viktor, aged 22 = 10% of trust net income
4. Yvette, aged 12 = 15% of trust net income which is to be accumulated indefeasibly and paid at age 21. In the event of her death Yvette's share will be paid toher estate.

Any remaining income is to be retained in the trust for re-investment purposes.

Required:

(a) Calculate the s 95(1) trust net income for 2015/2016.