Hemant Ltd, carries on a manufacturing business and had a number of transactions for the current tax year ended 30 June relevant to calculating its ordinary income: received $100 000 as compensation for the loss of trading stock due to flooding in its business premises; received $300 000 for the outright sale of a patent/copyright for a product it no longer manufactures; received $400 000 from the sale of its manufactured goods to a retailer. Based on this information what amount of ordinary income will Hemant Ltd have for the current tax year ended 30 June? a. $100,000 b. $300,000 c. $700,000 d. $500,000
Hemant Ltd, carries on a manufacturing business and had a number of transactions for the current tax year ended 30 June relevant to calculating its ordinary income: received $100 000 as compensation for the loss of trading stock due to flooding in its business premises; received $300 000 for the outright sale of a patent/copyright for a product it no longer manufactures; received $400 000 from the sale of its manufactured goods to a retailer. Based on this information what amount of ordinary income will Hemant Ltd have for the current tax year ended 30 June? a. $100,000 b. $300,000 c. $700,000 d. $500,000
Chapter17: Corporations: Introduction And Operating Rules
Section: Chapter Questions
Problem 45P
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- Hemant Ltd, carries on a manufacturing business and had a number of transactions for the current tax year ended 30 June relevant to calculating its ordinary income:
- received $100 000 as compensation for the loss of trading stock due to flooding in its business premises;
- received $300 000 for the outright sale of a patent/copyright for a product it no longer manufactures;
- received $400 000 from the sale of its manufactured goods to a retailer.
Based on this information what amount of ordinary income will Hemant Ltd have for the current tax year ended 30 June?
a. |
$100,000 |
|
b. |
$300,000 |
|
c. |
$700,000 |
|
d. |
$500,000 |
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