Reference no: EM133266591

Assignment:

Jackie decided to build an investment property on a block of land that was given to her by her parents in 1984 when she turned 21 years of age.

The total cost of the house, including all labour and materials, was $320,000 and the work, which took 8 months to complete, was finished in 2017. She sold the house 5 years later for $540,000. At the time of the gift, the land was valued at $80,000 and when she sold the house, the land component by itself had risen in value to $280,000. During the financial year Jackie also sold her collection of antique furniture that was in the investment property for a total price of $75,000. Her cost base when she purchased the various items in 2016 was $25,000.

Required:

Calculate Jackie's net capital gain from the above transactions. Show your calculations.