Answer it based on the tax law of assessable income

Question 4 (4 points) Required: Discuss whether any part of the $2 million and/or the $1m constitutes ordinary income (citing authority where appropriate) (4 marks). MLT Ltd is a retailer of lighting products. It imports these lighting products from a number of suppliers and sells them under its own MLT name. GJ is one of MLT's suppliers, and supplies products that account for approximately 75% of MLT's sales and profits. This supply contract has 3 more years to run. However, on one occasion, GJ sold MLT faulty stock, which MLT used as display stock in its store. Due to the faulty product, this caused a fire in one of MLT's many stores, resulting in extensive damage to the premises. GJ informs MLT that it can no longer guarantee the supply of safe products, and so cancels its supply contract. GJ pays MLT $2m compensation for its cancellation, as well as $1m compensation for the cost of building a new store. The $2m is calculated in accordance with the amount of profit that MLT would have made under the contract with GJ had it not been cancelled. A few months later, MLT finds a new supplier, which supplies similar products to those previously supplied by GJ, at a similar price that GJ previously supplied them at.