5. Joey was recently scouted by a modelling agency and has had photo shoots for a...

Transcribed Image Text:

5. Joey was recently scouted by a modelling agency and has had photo shoots for a fashion label through them. However, he does not have any other modelling jobs lined up. Even though he is not currently working, the modelling agency values Joey's talent and pay him $1000 a month to only take modelling jobs from their agency. In the meantime, Joey is also expected to maintain a healthy diet, a regular exercise routine and avoid any activities that could negatively impact his appearance. Are the monthly payments that Joey is receiving ordinary income? C Group of answer choices No, they are not ordinary income as the income is expected but not sufficiently to his job as a model and are capital receipts. No, the payments are for a restrictive covenant, however if Joey receives modelling jobs from the agency, they will then be ordinary income. Yes, they are ordinary income as the payments are regular, expected and income from personal exertion related to his employment as a model. C No, the payments are for a restrictive covenant and are therefore capital in nature. 5. Joey was recently scouted by a modelling agency and has had photo shoots for a fashion label through them. However, he does not have any other modelling jobs lined up. Even though he is not currently working, the modelling agency values Joey's talent and pay him $1000 a month to only take modelling jobs from their agency. In the meantime, Joey is also expected to maintain a healthy diet, a regular exercise routine and avoid any activities that could negatively impact his appearance. Are the monthly payments that Joey is receiving ordinary income? C Group of answer choices No, they are not ordinary income as the income is expected but not sufficiently to his job as a model and are capital receipts. No, the payments are for a restrictive covenant, however if Joey receives modelling jobs from the agency, they will then be ordinary income. Yes, they are ordinary income as the payments are regular, expected and income from personal exertion related to his employment as a model. C No, the payments are for a restrictive covenant and are therefore capital in nature.

Answer rating: 100% (QA)

tin wuld be the rret beuse the inme reeived by Jey is n mnthly bsis nd the is txb... View the full answer