Dire Ltd, a retailer of household goods, loaned $35m to its wholly owned subsidiary Finance Ltd for a period of 10 years at an interest rate of 10% pa. It was an interest only loan with the full principal required to be paid to Dire at the end of the 10-year period. Finance would use the loan for the purpose of earning assessable income. Prior to Finance making any payment of interest on the loan, Dire sold the right to receive interest for the 10-year period to Eastpac Bank for $24m and the right to receive the $35m principal in 10 years for $16m to Southpac Bank. Based on these transactions how much, if any, should Dire bring to account as assessable income in the current year?

$8m

$35m

$3.5m

$24m