Net Income Calculation for Trust Estate and Taxable Liability of Beneficiaries

Taxation
Taxation

Answer given to the question no-1
Calculate and explain the net income of the trust estate.
The net income of the trust estate would be as fellow
Calculate and explain the net income of the trust estate.
Rental income $ 53,000.00
Interest Income $ 3,500.00
Unfranked dividends $ 15,000.00
Fully franked dividends $ 8,600.00
Overseas dividends (foreign tax paid $150) $ 600.00
Other investment income $ 14,850.00
Total income $ 95,550.00
Expenses incurred in earning rent $ 7,800.00
Interest paid on money borrowed to invest $ 500.00
Total Expense $ 8,300.00
Net income $ 87,250.00
(Figot, & Conitsiotis, 2011).