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Required: Briefly explain whether these amounts ($20K, $15K and $50K) are assessable as ordinary income. Kylie is a scientist who has a two year employment
Required: Briefly explain whether these amounts ($20K, $15K and $50K) are assessable as ordinary income.
- Kylie is a scientist who has a two year employment contract as a researcher for a pharmaceutical company. On top of her substantial salary, she also receives from her employer $20K for not working for a competitor for the duration of her work contract, and another $15K for not working for a competitor for 2 years after she ceases employment with her current employer.
- Kylie went on a TV contest which involves cake baking. She appeared in a number of episodes, and won the final prize of $50,000.
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