Cassie owns a farm with a large lake on it. The lake contains some rare minerals sought after by cosmetic companies. One particular cosmetic company pays Cassie $20,000 in exchange for Cassie agreeing to allow the company to filter the lake water, so as to extract the rare mineral from it. Under the terms of the contract, the company is entitled to extract up to 10 kg of this mineral. If less than 10 kg is extracted than the $20,000 is to be reduced on a pro-rata basis. As only 6 kg of minerals are extracted, Cassie ends up being paid $12,000.

Cassie invests this $12,000 in a 3 year annuity, where she receives $4500 per annum (with no return of capital at the end of the annuity).

Required: Briefly explain whether these amounts ($12,000, and the annuity receipts) are assessable income (citing authority where appropriate)