Page 18 - Test 1 Slides - 4. Gross Income

GROSS INCOME

Received by

Example 6

• The local horse racing track has arranged an event for the benefit

of the SPCA. The proceeds from the event will all be donated to

the SPCA. An amount of R100 000 profit is made at the race

meeting. The horse racing track hands this over to the SPCA

during a nice event.

• Will the amount of R100 000 be included in the gross income of

the race course if :

a) no contract was signed between the race track and SPCA;

b) a contract was signed between the race track and the

SPCA stipulating that all profits from the meeting were to
go to SPCA?

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