1. Josh is a builder and helping Greg at weekend to build his shed, Greg promised Josh to give him his old caravan (which cost him $12,000 on 1’st July 2000 when he bought it). Assume the shed was done on 1’st July 2020 when Greg handed over the Caravan to Josh. (Assume the value of Josh’s works was for $15,000, and the market value of the caravan was for $16,000) Discuss whether Josh needs to declare it as an ordinary income or not?
1. Josh is a builder and helping Greg at weekend to build his shed, Greg promised Josh to give him his old caravan (which cost him $12,000 on 1’st July 2000 when he bought it). Assume the shed was done on 1’st July 2020 when Greg handed over the Caravan to Josh. (Assume the value of Josh’s works was for $15,000, and the market value of the caravan was for $16,000) Discuss whether Josh needs to declare it as an ordinary income or not?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
1. Josh is a builder and helping Greg at weekend to build his shed, Greg promised Josh
to give him his old caravan (which cost him $12,000 on 1’st July 2000 when he bought
it). Assume the shed was done on 1’st July 2020 when Greg handed over the Caravan
to Josh. (Assume the value of Josh’s works was for $15,000, and the market value of
the caravan was for $16,000)
Discuss whether Josh needs to declare it as an ordinary income or not?
please put 3 references
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education