Question: 15. Toby breaks his leg at work when he falls down some stairs carrying boxes of stock. He also suffers a serious concussion and

15. Toby breaks his leg at work when he falls down some

15. Toby breaks his leg at work when he falls down some stairs carrying boxes of stock. He also suffers a serious concussion and is unable to work for a significant period of time. He sues his employer for a breach of workplace safety laws and is successful in his claim. His payout comprises of the following amounts, attributable under the following heads of damage: .$155,000 for loss of income; $300,000 for hospital fees; and .$50,000 for pain and suffering. What is the correct treatment of these payouts with regards to Toby's ordinary income? B Group of answer choices C The whole amount will be treated as capital because it is a compensation payment. Only the $155,000 that comprised of his wages will be ordinary income as it was in respect of lost wages. C The whole amount will be ordinary income because it was paid by his employer. The whole amount will be treated as a dividend and taxed at Toby's marginal rate of tax.

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