Question
Frank derives business income as a freelance photographer, During the year he won an industry award for one of his photographs amounting to $4,000 Mark
- Frank derives business income as a freelance photographer, During the year he won an industry award for one of his photographs amounting to $4,000
- Mark receives $6000 for sale of pottery. The sales relate to items that she has made as part of her hobby (her expenses are in excess of $1,000)
- Wendy receives $200 as an award for the best painting in a local art exhibition. Wendy paints two or three artworks a year, which she displays at home or gives as gifts to family.
- Tom receives $4,800 from mowing lawns in his local neighborhood. He does this each Saturday morning before his weekly game of golf.
Required: Giving reasons, indicate whether each TP is conducting a business or a hobby for tax purpose
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Financial and Managerial Accounting
Authors: Horngren, Harrison, Oliver
3rd Edition
978-0132497992, 132913771, 132497972, 132497999, 9780132913775, 978-0132497978
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