(4) Aco Ltd, and Xco Ltd. entered into an agreement to manufacture a new product...
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Accounting
Aco Ltd and Xco Ltd entered into an agreement to manufacture a new product for the next years. This represented of Aco's business. After five years it was decided that the two parties could not work together. On December Xco paid Aco $ to terminate the agreement. Is the receipt of this amount by Aco considered to be business income? 
Aco Ltd and Xco Ltd entered into an agreement to manufacture a new product for the next
years. This represented of Aco's business. After five years it was decided that the two parties
could not work together. On December Xco paid Aco $ to terminate the agreement. Is
the receipt of this amount by Aco considered to be business income?
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