Johnpaul is a resident Australian taxpayer, and works as a consultant cardiologist in the public hospital system. He receives an annual salary package of $290 000. JohnPaul has no partner and two children, aged 12 and 14. He has a main residence, as well as four investment properties, and a large share portfolio. JohnPaul purchased a residence (called Property A) on 1 June 2011 and lived it in it for eight years and sold it on 1 June 2019 for $850 000 before moving to a new area. He purchased and moved into a new residence on 2 June 2019 (Property B), at which time Property A was worth $700 000. The costs incurred for Property A were as follows: Valuation fees at time of purchase $4 500 Selling costs $18 000 Capital improvements undertaken in 2018 $70 000 JohnPaul purchased a parcel of shares for his investment portfolio in May 2005 for $15 000. He sold these shares in November 2018 for $35 000. Required

(a) What is the maximum period for which JohnPaul can claim the main residence exemption on Property A, sold on 1 June 2019?

(b) Using the facts in the question, calculate the net capital gain amount to be included in JohnPauls income tax return.