Accounting GreenCo Pty Ltd manufactures tractors to be used in large scale farming and agricultural activities. GreenCo enters into a contract with Plantation Pty Ltd (Plantation) for Plantation to supply GreenCo with various parts to use in manufacturing the tractors. Several months later, due to a downturn in the economy and the agribusiness sector, Plantation rescinded the contract and paid $50,000 to GreenCo to avoid any legal issues. Cancellation of the contract did not affect GreenCo’s business operating structure as GreenCo has numerous other different business activities. a. Does the $50,000 received from Silla form part of Defence’s ordinary business income? Justify your answer with reference to appropriate case law and legislation. b. Would your answer differ if GreenCo could not operate without the parts supplied by Plantation and if so, how?

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Answer a No 50000 received from Silla doesnt form the part of Defense ordinary B... View the full answer