Question:

taxation law-compensation

While cycling home From work Mark is hit by a car and seriously injured. He spends the next threemonths in hospital. Due to the severity oF his injuries, at the end oF the three months Mark isdeclared unable to work again. Aer protracted legal proceedings Mark receives the Following sumsoF money:

$500,000 From the insurer oF the driver who hit Mark;

$15,000 in lost wages through a workers' compensaon payment; and

$100,000 For the permanent loss oF the sight in one eye.

How is each of these amounts assessed?( specific solution)