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Question 4 Branda Fessy owns a very successful entertainment arena in Orlando (South Africa) for the past eleven years. Her arena often hosts overseas musicians
Question 4 Branda Fessy owns a very successful entertainment arena in Orlando (South Africa) for the past eleven years. Her arena often hosts overseas musicians and is also popular with the local market. She has never considered selling her entertainment arena. In June 2021, a large listed company saw the value in Branda Fessy's arena and offered her R5 million for the arena. (10 marks) Branda Fessy's cousin is the chairman of the "Orlando Overturn" committee. Branda Fessy knows that major redevelopment plans for Orlando will be announced in the next month. These plans will significantly increase the value of her property. Branda Fessy declined the offer from the large listed company. The major redevelopment plans were announced in July 2021 and during August 2021 Branda Fessy obtained an independent valuation for her property amounting to R12 million. She approached the large listed company and agreed to sell her entertainment arena for R12 million. The sale was concluded and all monies were received by Evanda Fessy in December 2021. REQUIRED: MARKS Discuss, with reference to the gross income definition, whether or not the monies received by Branda Fessy in December 2021 will be included her gross income. No reference to case law is required. 10
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