The Goodwin Family Trust is a discretionary trust with three individual resident beneficiaries (over 18 years of age): Mike, Mark and Matthew. The trustee made a resolution at the end of the current income year that all income, capital gains and dividends are to be distributed to the beneficiaries equally. Following is a summary of the financial transactions for the trust for the current year ended 30 June:

• Retail sales were $500 000.

• Allowable deductions relating to retail trading income were $220 000.

• Net capital gain (after 50% discount) on the sale of a commercial rental property was $80 000.

• Fully Franked dividends of $42 000 were received from Australian resident companies with standard corporate tax rates.

Which of the following statements is most correct?

Select one:

1.

The Net income of the Goodwin family trust for the current income year is $420 000.

2.

Any capital gains will be retained within the trust to be offset against future capital losses.

3.

Mike, Mark and Matthew will each be assessed under s 98 ITAA 36.

4.

The Net income of the Goodwin family trust is calculated in accordance with s 92 ITAA 36.

5.

The Net income of the Goodwin family trust for the current income year is $340 000.