Gabriel operates a small manufacturing business with an annual turnover of less than $2 million. During the current year ended 30 June Gabriel disposes of a CGT asset for $65,000. The asset has been used as an active asset from its date of acquisition in 2017 until its sale in the current year. You have determined the cost base for this asset is $40,000.

Gabriel also sells another asset, which results in a capital loss of $5,000 in the income year.

Assume that the small business retirement exemption and the small business rollover do not apply and that Gabriel has no prior unapplied capital losses.Based on this information, what is Gabriel's net capital gain for the year ended 30 June:

		$5,000
		$20,000
		$0. The small business relief provisions in Div 152 can be used to reduce or defer any net capital gain
		$25,000