Reference no: EM132968038

Maggie is employed as a full time teacher and works casually at the local university delivering subjects to aspiring teachers. With the increased use of online teaching and need to be prepared to switch to online delivery at short noticed she explored the opportunity to set up an online educational design support and editing business in June 2020. Costs included $3,000 exploring the viability of the venture, $1,500 in accountant's fees for a business plan and a further $3,000 was invested in August 2020 for computers and software. A further $1,000 was spent to set up the business including registration of business name, domain sites etc and $1,000 on advertising in September 2020. A number of projects have been completed although not enough to cover the costs incurred to set up the business. By 30 June 2021 Maggie had received $5,000 of the $8,000 of work completed with the balance outstanding expected to be received in August or September 2021. The additional costs incurred since starting for consumables and home office expenses was $800.

Required:

Prepare a report that discusses:

Problem 1: If Maggie would be considered to be in business?

Problem 2: Identify in which year the business would commence, and if the business has not commenced what actions should Maggie take to be considered to be in business?