George purchased a holiday home which he uses for recreational purposes on 30 June 1997 for $300,000. He decides to sell the home to his son, john in the current income year for $800,000. The market value of the property is $1,000,000 at the date that the contract for the sale of the property is entered into

Which of the following is correct?

The capital proceeds from the sale for George will be $800,000 and the cost base of the property to john will be $800,000

The capital proceeds from the sale for George will be $1,000,000 and the cost base of the property to john will be $1,000,000

The capital proceeds from the sale for George will be $1,000,000 and the cost base of the property to john will be $300,000

The capital proceeds from the sale for George will be $800,000 and the cost base of the property to john will be $300,000