Orchards Ltd and Tinned Fruits Ltd enter into a 10 year agreement under which Orchards limited agrees to sell minimum quantity of apples to Tinned Fruits each season and Tinned Fruits agree to purchas

Orchards Ltd and Tinned Fruits Ltd enter into a 10 year agreement under which Orchards limited agrees to sell minimum quantity of apples to Tinned Fruits each season and Tinned Fruits agree to purchase a minimum quantity of apples each season. They set the price at 15% less than the floating rate for apples recommended by the Fruit Association of NZ.

In Year 4 of the agreement, due to a new disease affecting apple trees only, far fewer apples are grown in at Orchards. Orchards wants to increase the price charged to Tinned Fruits because apples are now rare and they think they can make a greater profit selling the apples to other businesses at a higher rate. Tinned Fruits do not agree to the price increase but state they will accept $50,000 from Orchards to terminate the agreement.  Tinned Fruits aren't concerned about making tinned apples because they will simply buy more peaches and apricots to sell as tinned fruit.

The receipt of $50,000 to Tinned Fruits will be income, because there is no structural change to their business.

Yes or no?