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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 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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