Nikki works as a nurse in a retirement home. She owns a house in Brooklyn that is
Question:
Nikki works as a nurse in a retirement home. She owns a house in Brooklyn that is located on a large corner site on two busy roads. When Nikki is out one night, she meets Colin who is a plumber. Coincidentally, Nikki needs to get the plumbing fixed in her house and she has already had a quote for $4,500 to have this done. She and Colin come to an arrangement where Colin will repair or replace (as necessary) the plumbing throughout her house. In return, Nikki will allow Colin to place two large billboard signs on her section, advertising his plumbing business for a one-year period. Nikki also agrees with Colin that she will not let any other organisations use her land for advertising purposes for this one-year period.
Advise Nikki whether the value of the plumbing ($4,500) will be taxable to her under section CA 1(2) on grounds that it was income according to ordinary concepts.
College Accounting A Practical Approach
ISBN: 978-0134166698
13th Canadian edition
Authors: Jeffrey Slater, Debra Good