Question 7

Jamie received a lump sum compensation payment for loss of earnings and physical injury due to an accident. The sum received could be dissected and will be treated as:

a) Assessable incomeb) Taxable incomec) Capital in natured) Both assessable income and exempt incomee) Both assessable income and capital in nature

Question 8

Jamie frequently uses their personal car for work purposes. Accordingly, Jamie's employer reimburses Jamie $700 which represents the cents-per-kilometre value of Jamie's work-related travel. Jamie must declare the $700 as assessable income.

a) True - it constitutes assessable statutory incomeb) False - reimbursements paid after the fact are not assessable income

Question 9

Jamie receives $200 as an award for the best painting in a local art exhibition. Jamie paints two to three paintings a year which she displays at home or gifts to friends. Jamie must declare the $200 as assessable income.

a) Trueb) False

Question 10

Jamie carries on an underground gambling business and receives a lot of money from these activities. While the receipt of this money is illegal, Jamie must still declare it as assessable income.

a) Trueb) False