Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Which one of the following would NOT be regarded as income according to ordinary concepts? a. Darren often receives frequent flyer points as he is

image text in transcribed

Which one of the following would NOT be regarded as income according to ordinary concepts? a. Darren often receives frequent flyer points as he is required to travel frequently to visit clients. Darren receives 100,000 points for his travels this year and redeems all of these points for a return air ticket to New York where he goes for a three-week holiday. The normal price of the air ticket is $2,500. b. Geoff works as a motor mechanic. It has been recently discovered that his employer has been accidentally underpaying Geoff for the past 12 weeks. Geoff receives a lump sum payment of $20,000 for the amount of back pay for the 12 weeks. C. Shane is a drug dealer. Shane receives $100,000 from the sale of illegal drugs during the income year. d. The Frank Sinatra Appreciation Society is a nonprofit club set up for music lovers of the great Frank Sinatra. The club sells a range of Frank Sinatra merchandise to both members and non-members. During the income year, the club receives $25,000 from the sale of various merchandise to non-members

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Audit And Assurance Q And A 2019

Authors: ACA Simplified

1st Edition

1792949863, 978-1792949869

More Books

Students also viewed these Accounting questions

Question

3. How has e-commerce transformed marketing?

Answered: 1 week ago