Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Ted lives in Townsville and carries on a workwear clothing business in the central business district. During the year ended 30 June 2023 he had
Ted lives in Townsville and carries on a workwear clothing business in the central business district. During the year ended 30 June 2023 he had the following receipts: On 3 January 2023 the city council paid Ted $45,000 in compensation for the permanent loss of access to the street at the rear of his business premises. This will reduce the number of car parks available to his customers as well as making it more difficult to receive stock deliveries. As the road works took several weeks the city council compensated Ted $15,000 for the loss of profits caused by the temporary disruption to his business. On 1 March 2023 Ted received $50,000 for signing a contract with a clothing company to only stock their brand of protective work clothing. From that date Ted cannot stock this style of clothing from any other suppliers. Ted received a large order from a mining company to supply the companys employees with uniforms. Ted issued an invoice for $15,000 for the order on 25 June 2023. The mining company paid the $15,000 on 15 July 2023. On 28 May 2023 Ted placed an order with a clothing manufacturer based in China at a cost of $45,000. The goods were loaded onto the ship on 10 June 2023 and arrived at Teds shop on 5 July 2023. The shipping terms were FOB, meaning Ted took ownership, risk and control of the stock once it was loaded onto the ship. Required: Based on this information what are the income tax consequences of the above transactions for Ted for the year ended 30 June 2023? Support your discussion with reference to legislation, case law and/or taxation rulings
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started