The trustee of the BB Family Trust provides the following financial information for the year ended 30 June 2020:

• Sales revenue derived totalled $700,000
• Deductible operating expenses totalled $250,000
• Net capital gain from the sale of ASX listed shares (after 50% discount) of $100,000
• Fully franked dividends totalled $7,000

On 30 June 2020 the trustee resolved to distribute the net income to the following beneficiaries:

• Kate, aged 38 years, 50% of net income
• William, aged 39 years, 30% of net income
• George, aged 8 years, 10% of net income
• The remaining amount of net income was to be retained in the trust for investment purposes.

Which of the following amounts represents the income assessed to Kate in accordance with s97(1) ITAA 1936 for the year ended 30 June 2020?

Select one:

a. $280,000.

b. $278,500.

c. $330,000.

d. $225,000.

e. Nil.