A surf life saver, who was on duty, rescued a drowning child from the sea. A greatful parent of the child gave the life saver a gift valued at $500.

A surf life saver, who was on duty, rescued a drowning child from the sea. A greatful parent of the child gave the life saver a gift valued at $500. Surf life savers at this club are not paid for being on duty but do the work for the pleasure of helping swimmers in difficulties.

Required:

Advice the surf lifesaver if the gift she received from the parent is assessable income. Would it make any difference to your answer if

a) The lifesaver was paid by the club for being on duty or

b) If the gift had have been cash? 

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