In Year 1, Mike purchased a house in Winnipeg for $920,000. In Year 7, he acquired a cottage in Gimli, Manitoba, at a cost of $600,000. In Year 13, he sold both the house and the cottage. Proceeds on the sale of the Winnipeg house were $1,089,000, while proceeds on the sale of the cottage were $712,000. Which of the following is true regarding what Mike can report on his tax return for Year 13? A $65,000 is the lowest taxable capital gain that Mike can report. B Mike doesn't need to report a capital gain. C $32,500 is the lowest taxable capital gain Mike can report. D $45,500 is the lowest taxable capital gain that Mike can report