The Li Family Trust is a discretionary family trust with two adult resident beneficiaries, Emma and Peter. During this income year, the activities of the trust gave rise to the following:

Loss from rental property: ($6,000)

Interest income from term deposit: $4,000

Cash received from fully franked dividends: $14,000

A capital gain from the sale of BHP shares that had been held for two years: $10,000

The trustee of the trust resolved to distribute 100% of the trust income to Emma. Emma also has the following income:

Salary of $200,000 from which PAYG withholding tax instalments of $60,000 have been deducted.

Work- related expenses of $275. Emma has private hospital cover. Based on the facts above:

1. Calculate the taxable income and tax payable or refundable for Emma for the income year.
2. Would your answer differ if the Li Family Trust made a rental loss of $40,000?