Amstrong owns a residential property in Hong Kong. On $20$ March $2021,$ Amstrong entered into a one$-$year lease with Otto. The terms of the lease, as well as other related information, are as follows:

i$.$ Term of the lease: one year from $1$ April $2021,$ renewable on the anniversary date

ii$.$ Monthly rental: $$25,000,$ payable in advance

iii. Rent$-$free period: one month from $1$ April $2021$

iv$.$ Rental deposit: two months' rental, nonrefundable and paid on signing the lease

agreement.

v$.$ Management fee: $$3,000$ monthly, payable by Amstrong to the property management

company that runs and maintains the facilities and amenities services.

vi$.$ Government rent: $$1,000$ per quarter, payable by Amstrong

vii. Rates: $$1,400$ per quarter, payable by Amstrong. $($The rates were fully reduced by the

$$1,500$ rate concession granted by the Hong Kong SAR government.$)$

viii. Bank loan interest: $$12,000$ per month.

ix$.$ Renovation: $$80,000,$ incurred by Amstrong before the tenant moved in

x$.$ Repairs: $$2,000,$ incurred by Otto to pay for the digital door$-$lock $($broken but not due

to tenant's misuse or fault$),$ which was not reimbursed by Amstrong nor deducted

from the monthly rental payment

xi$.$ Agency fee: $50\%$ of one month's rental, payable by Amstrong upon signing the lease

Since November $2021,$ Otto has failed to pay the rent. Amstrong engaged a lawyer to send two reminder letters to Otto. Otto replied with two replies explaining his cash flow problem. He also advised Amstrong that the liability would be settled once his cash flow problem had been resolved. Otto promised to pay the rent in arrears back to Amstrong in April $2022.$ On $1$ January $2022,$ Amstrong sold the property with the lease, making a profit of $$1,200,000.$

Ccomputation of Amstrong's property tax liability for the year of assessment $2021/22.$

Concisely explain the tax treatments you just accorded to items vii. to xi$.$

Explain whether Amstrong will be subject to salaries tax in Hong Kong regarding the $$1,200,000$ income made from the sale of the property.