Identify ms marxs ordinary income

Reference no: EM13838987

Ms Marx recently sold her ice cream store, called 'Communist Ice Cream' in June 2015. In that income year, she made sales of $90,000. The purchaser paid Ms Marx $250,000 for the business and an additional $35,000 for Ms Marx agreeing not to operate or establish another ice cream store within a 20km radius of 'Communist Ice Cream'. Discuss each of the transactions and identify Ms Marx's ordinary income. Discuss with reference to case law and legislation.

Reference no: EM13838987

Questions Cloud

What is the level of absolute poverty in economy : Consider the following distribution of income in a 12 person economy, with the modern urban wage=3, the traditional rural income=1 and the informal urban wage = 2: (1,2,3,1,2,3,1,2,31,2,1). the poverty line is at 1.3. What is the level of absolute po..

What is the as share of x co s capital gains : A owned 40 percent of X co. (an S corporation) for 200 days during 2009. A owned 20 percent of X co. for the remaining 165 days in 2009. X co. is a calendar year taxpayer and in 2009 it had $365,000 of capital gains. A's share of X co.'s capital gain..

Shifts in demand left or right or supply shifts to explain : If there is a new breakthrough in manufacturing technology that reduces the cost of producing DVD players by half, what will happen the following Four parts of supply and demand: (1) supply of DVD players, (2) demand for DVD players, (3) price and sa..

Using supply and demand curves : If the demand increases for a product like gasoline and there is no change in the supply of gasoline at the same time, then using SUPPLY and DEMAND CURVES, the new equilibrium price might go up or stay the same, or be lowered.

Identify ms marxs ordinary income : Ms Marx recently sold her ice cream store, called 'Communist Ice Cream' in June 2015. In that income year, she made sales of $90,000. The purchaser paid Ms Marx $250,000 for the business and an additional $35,000 for Ms Marx agreeing not to operate o..

Passengers can in effect sell their confirmed reservations : If passengers can in effect sell their confirmed reservations when a seat shortage arises, why can't passengers sell their right to land at a crowded airport when a shortage of landing slots arises?

Who benefited from this new regulation : As a consequence of a 1976 court case that Ralph Nader won against an airline that had "bumped" him, the federal government adopted a rule requiring airlines to compensate people who were denied boarding despite holding a confirmed reservation. As a ..

Possible optimal consumption bundles for the consumer : An individual has an income of $1000 per month with which they buy the composite good with a price of $1 and food with a price of $2/unit of food. Would the consumer prefer to get $100 in food stamps or $100 in cash? You need to justify your answer t..

What is the income elasticity of demand for firms product : The demand equation for a company's product it Q = 500 - 3P + 2Pi + 0.1I where Q is the quantity demanded of its product, Pi is the price of its rival's product, and I is the per capita disposable income (in dollars). At present, p = $10, Pi = $20, a..

User Account

All Pages