Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Bills Fishing Tackle business premises was adversely affected by a fire that resulted from an electrical fault at the shop. Fortunately Bill was fully insured

Bills Fishing Tackle business premises was adversely affected by a fire that resulted from an electrical fault at the shop. Fortunately Bill was fully insured and received the following compensation payments from his insurance company. Which of these receipts are most likely to be included in assessable income? A. Compensation of $50,000 received for personal burn injuries Bill suffered when attempting to fight the fire at the business premises. B. Compensation of $50,000 received for the loss of trading stock. C. Compensation of $50,000 received for permanent damage to the shop building. D. Compensation of $50,000 received for the loss of plant and equipment. E. Compensation of $50,000 received for damage to his wifes private car that was parked near the shop building.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Observation And Audit Techniques For Measuring Retail Sales

Authors: Earl E. Houseman

1st Edition

0428139841, 978-0428139841

More Books

Students also viewed these Accounting questions