Question
equired: Discuss the assessability of each of these receipts (4 marks): Nick is a well known author who is in the business of being an
equired: Discuss the assessability of each of these receipts (4
marks):
Nick is a well known author who is in the business of being an author
and for a number of years writes books full
-
time and earns a
substantial income from this. He earns the following
amounts in the
current tax year:
A lump sum for a new book he finished in early 2021: $300,000.
The agreement with the publisher was for this lump sum
payment rather than Nick being paid for sales per book.
Sales of his gold pen that he used to write the manuscript of his
first novel: $20,000. As Nick was famous there were lots of
people wanting to buy the famous pen he used for his first
novel.
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