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Question - Kate entered into negotiations to sell her contract cleaning business to Jack on 1 March of the current income year. She initially asked Jack to pay her $450,000 for the business but he finally agreed to pay her $420,000 for the business and $25,000 for her agreement not to open up a similar business for the next four years in the same town. They signed two separate contracts: one for the sale of the business on 4 April of the current income year, and one for the agreement not to trade for four years on 16 April of the current income year. Kate received the $420,000 on 4 May of the current income year and the $25,000 on 16 May of the current income year. Which CGT event is applicable to the agreement to sell the business and what is the date of the CGT event?
CGT event D1 and 16 May of the current income year.
CGT event A1 and 4 April of the current income year.
CGT event A1 and 16 April of the current income year.
CGT event D1 and 16 April of the current income year.
CGT event A1 and 16 May of the current income year.
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