Word count: 2000 words 1) Jenny is an accountant who works in Hong Kong. She is single and lives in Hong Kong with her parents. Until April 2016, her...

Word count: 2000 words

A well-known television personality was paid a lump sum of $400,000 to encourage her to join a new television network. She accepted the offer and received an annual salary of $100,000 in addition to the lump sum payment.

Discuss whether both the $400,000 and the $100,000 receipts are assessable income.

Note: You will need to refer to case law and legislation to answer this question adequately.