Marney Stanton is a firefighter employed by the Western Australian Department of Fire and Emergency Services...

 

Transcribed Image Text:

Marney Stanton is a firefighter employed by the Western Australian Department of Fire and Emergency Services (DFES). During the course of the income year, the following events happen. 1. During a family vacation in New South Wales, Marney witnesses a fire break out at a factory containing flammable liquid owned by Chemco Pty Ltd. Marney acts quickly to assist in evacuating the employees of the factory and to contain the fire. The directors of Chemco Pty Ltd are so grateful for Marney's heroic actions they pay her $7,000. 2. Marney is also approached by a popular magazine to provide them with an interview about her career as a firefighter and her decisive actions in the factory fire disaster. She agrees to provide them with her story and they pay her $30,000. A term of her agreement with the magazine restricts Marney from selling the story to any other media outlets. 3. While working full time for DFES, Marney undertakes a Natural Disaster Planning course at UWA. DFES pays her fees. Marney wins a prize for her performance in the course. This is $2,000 and is paid by the sponsor of the prize. 4. At the end of a financial year, Marney is pleasantly surprised when her supervisor says that she, along with several of her co-workers, is getting a bonus in the form of a $3,000 gold watch (engraved with her name) due to her great performance. 5. At the same time as providing Marney with the gold watch, her supervisor also provided Marney with a $500 cheque and begged Marney to accept it as a token of the supervisor's affection and esteem. 6. Marney received $10,000 exempt income in relation to a scholarship for her Natural Disaster Planning course. State all the possible amounts of ordinary income in the above facts. Give reasons for your answers based on relevant case law and statutory provisions. Fully examine competing arguments. Marney Stanton is a firefighter employed by the Western Australian Department of Fire and Emergency Services (DFES). During the course of the income year, the following events happen. 1. During a family vacation in New South Wales, Marney witnesses a fire break out at a factory containing flammable liquid owned by Chemco Pty Ltd. Marney acts quickly to assist in evacuating the employees of the factory and to contain the fire. The directors of Chemco Pty Ltd are so grateful for Marney's heroic actions they pay her $7,000. 2. Marney is also approached by a popular magazine to provide them with an interview about her career as a firefighter and her decisive actions in the factory fire disaster. She agrees to provide them with her story and they pay her $30,000. A term of her agreement with the magazine restricts Marney from selling the story to any other media outlets. 3. While working full time for DFES, Marney undertakes a Natural Disaster Planning course at UWA. DFES pays her fees. Marney wins a prize for her performance in the course. This is $2,000 and is paid by the sponsor of the prize. 4. At the end of a financial year, Marney is pleasantly surprised when her supervisor says that she, along with several of her co-workers, is getting a bonus in the form of a $3,000 gold watch (engraved with her name) due to her great performance. 5. At the same time as providing Marney with the gold watch, her supervisor also provided Marney with a $500 cheque and begged Marney to accept it as a token of the supervisor's affection and esteem. 6. Marney received $10,000 exempt income in relation to a scholarship for her Natural Disaster Planning course. State all the possible amounts of ordinary income in the above facts. Give reasons for your answers based on relevant case law and statutory provisions. Fully examine competing arguments.

Answer rating: 100% (QA)

In the scenarios youve provided it seems that there are several potential amounts of ordinary income that Marney Stanton could be receiving Lets exami... View the full answer