Tom is an investor who has many different investment activities. What amount should he bring to account as assessable income in the current tax year ended 30 June based on the following amounts that he received?

• Rental income of $23 000 from renting out a residential property in Brisbane.

• A lump sum of $35 000 from another investor, Liz. This amount represented the net present value of interest income that Tom would otherwise have received over the next 3 years from a term deposit that Tom had with the National Bank. The actual interest was paid by the National Bank to Liz.

• A cash incentive of $5000 to encourage Tom to take out a 5 year lease on premises that Tom would use as an office for his business. Tom subsequently signed the lease for 5 years.

• A lottery win of $10 000.

• An amount of $12 000 which was received as compensation as a result of Tom breaking his arm in an accident. The amount was received as compensation for the pain and suffering that Tom endured.

Select one:

1. $63 000.

2. $80 000.

3. $28 000.

4. $75 000.

5. $68 000.