Is this a tracing question? (law help)

I'm doing practice papers for my trust law exam and I came across the following problem question:

14*. In breach of trust, Max transferred £100,000 from a trust bank account into his own, raising the total balance to £170,000, immediately using £120,000 to buy a leasehold title to a London flat. Six months later, he sold the lease for £180,000 and spent the entire amount at auction for a title to a painting which has been independently appraised to be worth only £100,000. Of the remaining £50,000 in his account, he used £20,000 to pay off a mortgage on his house, £10,000 to clear a tax bill, £10,000 to improve his yacht, and £10,000 to repay a loan he had taken out to buy a new car. Max is now bankrupt.

I answered this as if it were a tracing question and mentioned how you'd have to consider whether to apply the rule from Clayton's Case or the lowest intermediate balance rule at each stage. But when I go back over my notes and the notes from the class on tracing, it looks like every scenario/the case law deals with situations where there a multiple innocent contributors to the misappropriated fund. How would I answer this question in approximately 1500 words?

What does the question ask you to do exactly?

Advise the beneficiary of the trust