Questionquestion 1show the issues to consider when deciding

Assignment Help Financial Accounting

Reference no: EM13348642

Question:

Question 1

Show the issues to consider when deciding whether a receipt is income according to ordinary concepts.

You should explain relevant cases. Identify at least 3 examples of ordinary income.

Describe how it is different to statutory income and exempt income.

Show, with reference to legislation or case law, whether the subsequent are ordinary income, statutory income or exempt income in the hands of the recipient:

A gift received from a close friend who is also a former employer
A lump sum amount of $8,000 get by an employee for a broken leg suffered as a result of an accident at work
A furniture retailer receives $12,800 commission from a supplier for selling goods on consignment
A cash prize of $500 for being named 'employee of the month'
Profit of $6,000 from the sale of shares by an insurance company
John was reimbursed $1,100 for half of the cost of a new fence between his residential rental property and a neighbor.

You should describe why you have come to your decision in each case above.

Question 2

Show the essential criteria for determining whether a fringe benefit has been provided.

Show, with reference to legislation, whether the following are fringe benefits, and if so, how to determine the value of the benefit:

Employer paid $1,400 for an annual bus/rail ticket for an employee to use exclusively for travel between home and work each work day.
A company pays $5,000 of the private school fees on behalf of the child of its Chief Financial Officer.
A car is provided for employee sales representatives to visit customers every business day. The car will also be used by employees on weekends and holidays.
An employee is provided a $150 award by his employer for improving safety conditions in the business.

Reference no: EM13348642

Questions Cloud

Questionthe project paper focuses on a suggested topic : questionthe project paper focuses on a suggested topic related to art architecture music history or literature. the

Questiona describe what the term preventive legal : questiona describe what the term preventive legal management addresses. b explain any 5 stakeholders that have a legal

Question 1show the tests developed by court cases to : question 1show the tests developed by court cases to differentiate between losses and outgoings on revenue account and

Questionit is our plan to be global market leader by 2015 : questionit is our plan to be global market leader by 2015 and we are moving towards this goal with the implementation

Questionquestion 1show the issues to consider when deciding : questionquestion 1show the issues to consider when deciding whether a receipt is income according to ordinary

Question1 using microsoft excel prepare a flowchart : question1. using microsoft excel prepare a flowchart documenting the acquisitionpayment process for abc corporation.

Questionacme company uses the weighted-average method in to : questionacme company uses the weighted-average method in to compute product costs and reports the subsequent costs for

Questionace company produces a product that sells for 142 : questionace company produces a product that sells for 142 per unit. ace in june and july the first 2 months of

Questionat the starting of 2014 ace company estimated the : questionat the starting of 2014 ace company estimated the subsequent costs to produce one unit of product 5 pounds of

User Account

All Pages