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QUESTION 3 The Rosy Discretionary Trust has a property investment portfolio. During the 2017 income year the Trustee recorded a net trust income of...

This question was created from FNSACC601 Final – 2017.pdf https://www.coursehero.com/file/28945544/FNSACC601-Final-2017pdf/

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QUESTION 3 The Rosy Discretionary Trust has a property investment portfolio. During the 2017’ income year the Trustee
recorded a net trust income of $168,000. All of the income is derived from Australian property investments.
The trustee resolved to distribute the net income of the trust as follows: Rosy (aged 28) 30%
Indiana {Rosy's sister aged 16) 10%
Sarah (Rosy‘s Auntie aged 38, who lives permanently in Paris, France} 10%
RPM Pty Ltd {Australian resident company - 100% owned by Rosy] 10%
The Robe Soccer Club (non-profit, tax exempt community organisation) 5%
Ben - Rosy's Friend who is a bankrupt 10% There was one discretionary distribution made:
- $10,000 was paid towards Indiana's school fees. The balance was undistributed. REQUIRED:
( a ) Complete a Distribution schedule. ( b ) Calculate tax payable by the trustee. ( c ) The trustee made the resolution to distribute 10%: of income to Ben on 30 June 2017.
In August 201? the trustee found out Ben was a bankrupt. The trustee then decided to change her mind and not pay Ben his share of the income.
Is the trustee able to do this? Give Reasons.

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