Discuss whether each of these receipts constitutes ordinary income due to being normal business proceeds (citing authority
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Question:
The Flower Shop is owned by Kate who owns it as a sole trader. It sells flowers in its store. As well as in-store sales, it earned the following amounts in the current tax year:
-$5,000 for a large order of flowers to deliver to a wedding.
-$3,000 from a nearby vase shop in exchange for The Flower Shop displaying a sign informing customers that if they wish to buy a nice vase to put their flowers in, they can find it in the nearby vase shop.
-$2,000 paid by a filmmaker in exchange for permission to film the running of The Flower Shop for two days, so as to create footage to incorporate into the filmmaker's documentary on flower shops.
Related Book For
Smith and Roberson Business Law
ISBN: 978-0538473637
15th Edition
Authors: Richard A. Mann, Barry S. Roberts
Posted Date: