In $2022,$ Emma wrote a play called $"$My Kitchen Antics" which was based on the life of her late mother who was a celebrity chef. In August $2022$ she was offered a contract by a Sydney Theatre company to produce the play. The agreement stated that Emma would recieve an amount of $$50,000$ on signing of the contract and $10\%$ of any ticket sales. Emma signed the contract in October $2022$ and received the payment on $$100,000.$ The play expected to open to the public in July $2023$ and will run for $6$ weeks.

 

 With reference to relevant legal authority, advise Emma how this arrangement will be treated for taxation purposes and how much, if any, will be assessible in the year ended $30$ June $2023$? 

Answer rating: 100% (QA)

Based on the information provided here is the analysis of the taxation treatment of Emmas arrangemen... View the full answer