Anna is a fitness consultant operating as a sole trader
Ask Expert

  • Your study cart is empty!

Be Prepared For The Toughest Questions

Practice Problems

Anna is a fitness consultant operating as a sole trader

Week 2 Question

Anna is a fitness consultant operating as a sole trader. Anna recently completed two fitness contracts for two of her clients.

In her first contract, Anna provided a 10-hour fitness training course to her client, Sam. Anna charged $1,000 for her fitness training course. This included fitness training materials that cost Anna $100.

In her second contract, Anna provided fitness video tutorials for a client, Lilly. Anna charged $1,000 in total. This included $200 to cover the cost of the video recording materials.

With reference to the relevant legislation and/or case law, discuss whether or not these receipts are Anna’s income from personal services.

Hint
Accounts and FinancePersonal Service Income (PSI) is the income that an individual would generate from his/her personal skills or efforts. Usually, the income is not generated from the sale of goods. Income can only be categorized as PSI when more than 50% of the amount received labor, skills, or expertise. The professionals that would fall into this class are the medics, IT Consultants, Engineers...
Related questions

Know the process

Students succeed in their courses by connecting and communicating with
an expert until they receive help on their questions

1
img

Submit Question

Post project within your desired price and deadline.

2
img

Tutor Is Assigned

A quality expert with the ability to solve your project will be assigned.

3
img

Receive Help

Check order history for updates. An email as a notification will be sent.

img
Unable to find what you’re looking for?

Consult our trusted tutors.

Ask a Question

Developed by Versioning Solutions.