Masala Mudunungu

Sister Masala Mudunungu is employed as a dental nurse by Dr Mbulu Madilonga. When she turned 25 years, her employer gave her an innocent box of imported chocolates and a harmless bowl of flowers. The imported chocolates had cost R1 000 and the flowers had cost him R750.In addition she was awarded her normal monthly salary of R22 500 and a bonus of R22 500.

Dr Mbulu Madilonga has been paying his employees a bonus during their birthday month. This system helps the employer from a cashflow perspective, and in addition by knowing their dates of birth, he then decides if he would like to give them a present.

Required:

Discuss whether the various amounts received Masala Mudunungu will be included in gross income. (10)