On 1 May 2009, Mr. Lee's employer granted

Mr. Lee a right to acquire 10,000 shares in

Hong Kong Stone Limited at $30 per share,

and the option had to be exercised on or

before 31 March 2012. In order to signify his

acceptance of the grant of the option, Mr.

Lee paid $100 to his employer on 5 May

2009. Mr. Lee exercised the share options

in August 2010 and gave the requisite share

price of $30 to his employer, and obtained

10,000 shares from Hong Kong Stone

Limited when the shares of Hong Kong

Stone Limited rose to $100 per share. Mr.

Lee sold the 10,000 shares for $108 per

share in October 2011.

You are required to advise Mr. Lee on the

assessable income arising from the above

events.