Required: Discuss whether any part of the $1 million compensation constitutes ordinary income (citing authority where appropriate). TVI is a manufacturer of quality television parts. It has a factory located in Dandenong. It has 5 major customers. One of its customers, M Ltd, which accounts for 25% of its profit, cancels its long-term contract to purchase the TV parts from TVI. The contract was 5 years in duration, and at the time of cancellation, this contract had 3 years to go. Consequently, M Ltd compensates TVI in the amount of $1 million. This compensation is for both: i) TVI's loss of profit that TVI would have made from the contract with M Ltd; and ii) For the loss of TVI's reputation due to the contract's cancellation. The compensation for the loss of reputation was due to the fact that the contract's cancellation did cause people to query whether TVI's products were of sufficient quality, and it is expected that this loss of reputation would be permanent. The compensation amount for the loss of reputation was calculated by M Ltd on the basis of TVI's loss of profitability from losing potential future customers (customers other than M Ltd). M