Robin is a scientist and on 15 May 2020 she received compensation of $80,000 for wrongful dismissal
Question:
Robin is a scientist and on 15 May 2020 she received compensation of $80,000 for wrongful dismissal from her former employer, LabexPty Ltd. The compensation was to reimburse Robin for lost wages as a result of the dismissal. On 20 May 2020, Robin received $10,000 for agreeing to enter into a two-year contract to work with Johnson & Co Pty Ltd and she started working for them on 10 July 2020. While she was between jobs, she did some part-time work as a consultant and earned a net amount of $1,700 after PAYG withholding of $800 was deducted.
Based on the above transactions, what amount will Robin include in her assessable income for the year ended 30 June 2020? Explain your treatment of each item.
Accounting Texts and Cases
ISBN: 978-1259097126
13th edition
Authors: Robert Anthony, David Hawkins, Kenneth Merchant