1. Mr. Au is an employee of a Hong Kong company and was granted a share option by the employer on 15/11/2005. The value of the relevant share at the time of granting the share option was $10 per share. Mr. Au exercised the option to buy 10,000 shares at a price of $6 per share on 01/01/2006 when the market value of the share was $9 per share. Subsequently on 01/02/2006, 5,000 share were sold at $13 per share. Calculate Mr. Au's liability to Salaries Tax in respect of the share option transaction for the year.

2. An employee's salaries tax return for a year of assessment shows: (1) salary $360,000, (2) housing allowance (in the nature of refund of rent) $120,000, (3) allowance employment expenses $20,000, (4) annual bonus $60,000. Calculate the total taxable amount of employment income (before deducting personal allowance).