Answer to Question #59493 in Finance for nazish
newspaper offers her $10,000 for her life story, if she will write it.
Without the assistance of a ghost writer, she writes a story and
assigns all her right, title and interest in the copyright for $10,000
to the Daily Terror. The story is published and she is paid. She has
never written a story before. She also sells the manuscript to the
Mitchell Library for $5,000 and several photographs that she took
while mountain climbing for which she receives $2,000.
Discuss whether or not the three payments are income from
personal exertion. Would your answer differ if she wrote the
story for her own satisfaction and only decided to sell it later?
These three payments are income from personal exertion, because the book was written personally and the rights, manuscript and photos were sold in accordance with the law. If she wrote the story for her own satisfaction and only decided to sell it later, the situation will be the same.
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