How could the Zhou discretionary family trust with the following particulars distribute residual income to minimize tax in the 2020 income year:Taxable income of $52,000 at the end of the income year.A choice of two beneficiaries, all of whom could be made presently entitled to a portion of the income and are a resident of Australia for tax purposes:Fred who is 50 and has other taxable income of $48,000Samantha who is 18 and has no other income.

Trust is the fiduciary relation among parties where trustee is the beneficiary can hold right on the…

Answered: How could the Zhou discretionary family…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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How could the Zhou discretionary family trust with the following particulars distribute residual income to minimize tax in the 2020 income year:

Taxable income of $52,000 at the end of the income year.
A choice of two beneficiaries, all of whom could be made presently entitled to a portion of the income and are a resident of Australia for tax purposes:
Fred who is 50 and has other taxable income of $48,000
Samantha who is 18 and has no other income.

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