In which of the following scenarios is it most likely that the taxpayer derived ordinary income...
In which of the following scenarios is it most likely that the taxpayer derived ordinary income in the current tax year ended 30 June? Select one:
1. A full-time student sells home-made soaps at the local markets once every two months. The student has earned $1000 for the income year.
2. A retailer receives a prize of a laptop computer from a manufacturer on 15 June of the current tax year valued at $1000 for achieving the highest quarterly sales of a particular product.
3. An individual who wins a cash prize of $100 000 from a lottery ticket.
4. A once only lump sum payment of $100 000 made to a golfer to turn professional.
5. Matthew's bank account is credited with interest of $500 on 20 July of the following tax year.
Jack is a resident investor who has many different investment activities. What amount should he bring to account as ordinary income in the of the current tax year ended 30 June based on the following amounts that he received? Receipt of $45 000 from the sale of land he purchased as an investment 5 years ago. Receipt of $27 000 for agreeing not to open a fast food outlet in Toowoomba for the next 3 years. The payer, Kate had purchased a fast food business from Jack and wanted to ensure that Jack would not open another business in competition with her for 3 years. Receipt of $15 000 from the sale of trading stock in a small business that he operates. Receipt of $22 000 from a lottery operated by a national lottery firm.
Select one: 1. $109 000. 2. $94 000. 3. $87 000. 4. $60 000. 5. $15 000.
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