Determining taxable income

 

Types of taxable income
The ordinary income	The secondary (Subsidiary) income	The capital income
The total revenues realized from  the daily operation.  •in the manufacturing industry  it will be the production and selling products, •in the merchandising industry it   will be the purchasing and selling  of goods.	The total revenues realized from a secondary activity, are considered to be non-operating revenues. For example, interest earned by a manufacturer on its investments is non-operating revenue.	Capital Revenue maybe achieved as a result of: A- The liquidation of fixed  assets.  B- Settlement of company's  obligations for less than its  book value. C- Revaluation of assets  & liabilities.