You are the trustee the Starbuck Family Trust which is a discretionary family trust with four beneficiaries: William, Laura, Lee and Kara. The trust in the 2007/-8 tax year generated $110,000 of trading income. $63,000 in fully franked dividends, ($27,000) in franking credits, and $25,000 in deductible expenditure in earning the trading income. The following payments from the trust were made in the tax year: $11,500 paid to Geelong Bank to discharge William's personal loan. $17,000 paid to Laura. $10,000 to Lee which she used to purchase shares in ANX at $10 a share. $12,500 paid to Kara's private school. Other Information