1. Badges of trade are used to determine whether an income derived is a business trading...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
1. Badges of trade are used to determine whether an income derived is a business trading income or not. Discuss the main criteria derived from case law decisions that are used to distinguish trading income. 2. Ahmad acquired a piece of agriculture land located at Hulu Langat in 2000 for RM155 thousand. He intended to develop the land into a residential housing area. However, he had been unable to do so due to the failure to obtain the title to the land. In the meantime, he derived sales from papaya and banana fruits amounted to RM10,000. The land was compulsorily acquired by the government in 2020 for a new proposed water dam and he was paid a compensation of RM2 million. State with reasons, whether the compensation and the receipts derived from the sale of fruits are business income. 3. Discuss with examples on the assessable of receipts listed below: a. Receipts in cash for goods sold or services rendered b. All debts arising of past sales or services c. Receipts in kind d. Recovery of bad debts e. Insurance recovery for loss of profit. 4. The determination of capital and revenue expenditure depends on the facts of each case. Discuss on the various test used: a. "Once and for All" b. "Enduring Benefit" c. "Identifiable Asset" d. "Fixed Versus Circulating Capital" e. "Business Entity" 1. Badges of trade are used to determine whether an income derived is a business trading income or not. Discuss the main criteria derived from case law decisions that are used to distinguish trading income. 2. Ahmad acquired a piece of agriculture land located at Hulu Langat in 2000 for RM155 thousand. He intended to develop the land into a residential housing area. However, he had been unable to do so due to the failure to obtain the title to the land. In the meantime, he derived sales from papaya and banana fruits amounted to RM10,000. The land was compulsorily acquired by the government in 2020 for a new proposed water dam and he was paid a compensation of RM2 million. State with reasons, whether the compensation and the receipts derived from the sale of fruits are business income. 3. Discuss with examples on the assessable of receipts listed below: a. Receipts in cash for goods sold or services rendered b. All debts arising of past sales or services c. Receipts in kind d. Recovery of bad debts e. Insurance recovery for loss of profit. 4. The determination of capital and revenue expenditure depends on the facts of each case. Discuss on the various test used: a. "Once and for All" b. "Enduring Benefit" c. "Identifiable Asset" d. "Fixed Versus Circulating Capital" e. "Business Entity"
Expert Answer:
Answer rating: 100% (QA)
1 The main criteria derived from case law decisions that are used to distinguish trading income from nontrading income are 1 The taxpayers intention If the taxpayers intention is to earn a profit from ... View the full answer
Related Book For
Chemistry The Central Science
ISBN: 978-0321696724
12th edition
Authors: Theodore Brown, Eugene LeMay, Bruce Bursten, Catherine Murphy, Patrick Woodward
Posted Date:
Students also viewed these business communication questions
-
75 kN 10 kN Determine the force in EV members FE, FC, BC, FB, and AB (highlighted with green color) 1.8 m 18 m A is a roller and D is a pin support 18 m Include all necessary FBDS in the solution 24...
-
Discuss the five key criteria that are used to determine the managerial approach an organization develops to guide the organization's decision-making process. How are these combined to form a process...
-
An experiment was designed to determine whether an aquatic plant absorbed iodide ion from water. Iodine-131 (t1/2 = 8.02 days) was added as a tracer, in the form of iodide ion, to a tank containing...
-
A Xerox machine in a shop is operated by a person who does other jobs too. The average service time for a job is 6 minutes per customer. On an average, in every 12 minutes one customer arrives for...
-
Grades for first semester are compared to those for second semester. The five one-semester courses biology, chemistry, English, history, and psychology must be taken next year. Make a list of all...
-
What are some procedures the auditor can use to investigate the likelihood that fraud might exist in a company's accounts? The procedures should relate to identifying the potential existence of...
-
Data extracted from a year-end balance sheet are shown below. Compute the working capital for this firm. What would the current ratio be, and what is the significance for this firm? Accounts payable...
-
1. Because of inflation, Jake expects the price at which he can sell the trees to increase by 3% per year. What price does he expect to receive if he keeps the trees until they reach 8 feet or 10...
-
Question 68 3 pts On July 1, 20x1, Sanchez Corporation acquired 3,000 shares (20% ownership) of Beal Corporation common stock at $40 per share plus brokerage fees of $600. The investment of $120,000...
-
Snackums, Inc., purchases wheat for use in its food manufacturing process. Snackums operates in a highly competitive industry and is rarely able to increase its sales price. On January 1, 2024,...
-
3. (a) Explain how Booths Algorithm is suitable for signednumber multiplication in comparison to the conventional shift andadd multiplication method. (b) Let multiplicand A = 110101 and multiplier B...
-
Write a program to find out sum of each digit in the given number using recursion logic. using the value 12345 as the input . For example, if the number is 12345, then the sum should be 1+2+3+4+5 =...
-
Reddington Enterprises is considering the two capital budeting projects with the following cash flows that have a WACC of 11%. Year Redd Wine Vineyards Kaplan Cleaners -200,000 -200,000 1 50,000...
-
Kilt Company had the following information for the year: Direct materials used Direct labor incurred (5,000 hours) Actual manufacturing overhead incurred $110,000 $150,000 $166,000 Kilt Company used...
-
One of Swifty Company's activity cost pools is inspection which has estimated overhead costs of $150000. Swifty produces throw rugs (700 inspections) and area rugs (1300 inspections). what amount of...
-
Sandhill's Hair Salon is considering opening a new location in French Lick, California. The cost of building a new salon is $310,000. A new salon will normally generate annual revenues of $68,950,...
-
Safe-T Corp. has no debt outstanding and a total market value of $4,500,000. The firm is considering a debt issue of $2,700,000 at an 8% interest rate and will use the funds to buy back shares in the...
-
Funds are separate fiscal and accounting entities, each with its own self-balancing set of accounts. The newly established Society for Ethical Teachings maintains two funds-a general fund for...
-
Calculate the minimum pH needed to precipitate Mn(OH)2 so completely that the concentration of is less than 1 per liter [1 part per billion (ppb)].
-
Can the equilibrium constant ever be a negative number? Explain.
-
The reaction SO2CI2(g) SO2(g) + CI2(g) is first order in SO2Cl2.Using the following kinetic data, determine the magnitude and units of the first-order rate constant: Time (s) Pressure SO2CI2 (atm)...
-
Calculate the volatility and the current price of oil futures implied by the call 1600 August and the call 1700 August of Figure 19.8 by using the Black-Scholes formula with \(T=.25\). OIL CRUDE OIL...
-
A company issues a \(10 \%\) coupon bond that matures in 5 years. However, this company is in trouble, and it is estimated that each year there is a probability of .1 that it will default that year....
-
Consider a continuous-time environment, with \(e\) as a variable outside of the market. (a) Suppose the final payoff is \(V\left(x_{e}, T ight)=x_{e}(T)\). Find \(V\left(x_{e}, t ight)\). (b) Find a...
Study smarter with the SolutionInn App