Question: Explain why pension is considered assessable income. John received a lump sum payment of $4,000 from his former employer to help him offset the effects

Explain why pension is considered assessable income. John received a lump sum payment of $4,000 from his former employer to help him offset the effects of inflation on his pension. Explain if the lump sum payment is assessable income.

(c) Singh operates a shuttle business and has a fleet of 4 cars. One of his cars was badly damaged in an accident and was beyond repair. Singh received a compensation of $2,800 from a local insurance company for the car. Singh also received a vehicle with a second hand value of $15,000 from His uncle to help him in his shuttle service. Explain if assessable income arise for Singh.

(d) Mary enrolled for nurses training college and received a monthly allowance of $2,500. One of the conditions associated with the allowance was that allowance was to be repaid if Mary did not pass the course and complete three years of nursing practice after graduating. Explain if the allowance is assessable income for Mary.

(e) Hillcrest Limited was engaged in an isolated transaction of buying and selling a machine for production of cement bricks, with a view to making a profit, having no intention of using the machine or deriving income from it. The purchase price of the machine was $50,000 and the selling price $56,000. Does assessable income arise for Hillcrest Limited. Explain.

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