Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Rebecca is a solicitor and on 15 March 2020 she received compensation of $40,000 for wrongful dismissal from her former employer, ABC Lawyers Pty Ltd.

Rebecca is a solicitor and on 15 March 2020 she received compensation of $40,000 for wrongful dismissal from her former employer, ABC Lawyers Pty Ltd. The compensation was to reimburse Rebecca for lost wages as a result of the dismissal. On 20 May 2020, Rebecca received $10,000 for agreeing to enter into a two-year contract to work with Johnson & Co Pty Ltd and she started working for them on 10 June 2020. While she was between jobs, she did some part-time work as a consultant and earned a net amount of $1,700 after PAYG withholding of $800 was deducted. Based on the above transactions, what amount will Rebecca include in her assessable income for the year ended 30 June 2020?

a.$50,000

b.$40,000

c.$50,600

d.$51,700

e.$52,500

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Essentials Of Managerial Accounting

Authors: Kurt Heisinger

1st Edition

0618436693, 978-0618436699

More Books

Students also viewed these Accounting questions

Question

Review The New Employee, the case study for Chapter

Answered: 1 week ago