Reference no: EM131680232

Question - Lululemon is a resident company that acts as trustee of the Yoga Family Trust. The following transactions occurred during the year in relation to the trust:

• Rental income from a Sydney property $60,000
• Deductible expense in relation to the Sydney property $10,000
• Unfranked dividends $18,000
• Franked dividends $10,000
• Interest $2,550

There are three beneficiaries of the Yoga family trust;

• Paige - resident and aged 50
• Luke - resident and aged 14
• Gen Co. - non resident company

On the 30 June 2015, Lululemon, in accordance with the trust deeds, resolves to distribute 25% of the trust income to each of the three beneficiaries. No resolution is made with regards to the remaining 25%.

Required: Calculate the s95 trust net income for the 2014/15-tax year.

Advise each of the beneficiaries of the tax implications of their trust distributions.