Oscar severely injured his spine in motorcycle accident which resulted in him becoming a paraplegic....
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Accounting
Oscar severely injured his spine in motorcycle accident which resulted in him becoming a paraplegic. As a result he consulted a lawyer and was successful in obtaining compensation payout of $500,000 from his insurance company. In addition to the lump sum payment , Oscar received prejudgement interest of $60,000. The insurance company appealed the decision in higher court, however the original decision was confirmed and a further $20,000 of interest was awarded by the court. The insurance company therefore paid Oscar an amount of $580,000 immediately following the final decision. What amount should oscar include in his assessable income as a result of these receipts?
- $500,000
- $80,000
- $560,000
- $580,000
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