Time left 3:38:2 2.2 TAX PRINCIPLES COMPARED WITH ACCOUNTING PRINCIPLES (5 Marks) ABC Pty Ltd is a small proprietary company which provides IT services to small business clients. An extract from the company's Profit and Loss Statement for the year ended 30 June 2023 is as follows: INCOME $ Service Revenue 200,000 Other income (Note 1) 10,000 Total comprehensive income 210,000 Note 1. Other Income comprises: Gift from retiring director $10,000 Your task: Explain why accounting income in this case may differ from assessable income for tax purposes. (5 marks)

2.2 TAX PRINCIPLES COMPARED WITH ACCOUNTING PRINCIPLES (5 Marks) ABC Pty Ltd is a small proprietary company which provides If services to small business clients. An extract from the company's Profit and Loss Statement for the year ended 30 June 2023 is as follows: Note 1, Other Income comprises: Gift from retiring director $10,000 Your task: Explain why accounting income in this case may differ from assessable income for tax purposes. ( 5 marks)