Question 1 Are any of the following assessable as ordinary income? Fully justify your answer with reasonable arguable positions using the 'cite, describe, apply' approach. a) Wages and tips from part time employment as a bar attendant. b) Weekly compensation payments to a self-employed person out of an income protection insurance fund. c) A lottery prize of $10,000. d) Winnings at the dog races. The punter had developed a betting system to pick winners and visits the race track to inspect dogs prior to placing each bet. =) A voluntary payment of $5,000 to a solicitor by a generous client with whom a personal relationship had developed over many years. The solicitor had already been paid by the client for work done. Payment received by a retailer under an agreement to deal only in a certain brand of products. 8) Proceeds from the sale of a person's holiday house. h) A prize won by a sole trader pharmacist for winning an annual competition conducted by a wholesale supplier for the best Christmas display of merchandise . The prize was a painting to the value of $2,000 ? Question 2 Discuss the facts and the significance of the decision in Ferguson v FCT 79 ATC 4261 (eReader). In your discussion , be prepared to identify the issues together with the criteria and case law applied by the Court in reaching its decision Question 3 Unfortunately, a serious armed conflict with a hostile country has necessitated the raising of a volunteer army from the citizenry . Fred Dickson has answered his country's call by resigning from his employment and enlisting. He has been encouraged in this action by his former employer which has a company policy of paying the difference between the lower army pay and the pay received while in the company's employment. This 'make up' payment is made purely for patriotic reasons in encouraging enlistment and is not conditional on the recipient's returning to the company after army service has been completed. Fred is a single person with no family commitments and is independently wealthy, but he gratefully accepts these payments from his former employer. For the income year in question, the amount of make up pay from the former employer is $5200. Advise Fred whether this amount should be treated as assessable income. Use the 'cite, describe, apply ' approach in writing and communicating your advice Hint: Read FCT v. Dixon (1952) 86 CLR 540 - see eReader - and refer to it in your