Katie's brother died in March 2020, and as a result, at that time, she inherited the following assets from her brother:

• A house (House A) was purchased by her brother in June 2010, which had been used by her brother as his main residence. In her brother's hands, the cost base was $400,000. Market value in March 2020 was $1,000,000.
• A house (House B) was purchased by her brother in July 2012 and used by him as an investment property. In her brother's hands, the cost base was $700,000. The market value during March 2020 was $800,000.

Katie initially rents out both houses, and then makes the following sales during January 2021:

• House A: sold for $1,100,000
• House B: sold for $950,000
• Required: Discuss the CGT consequences regarding Katie selling the 2 houses. Where applicable, discuss if the 50% discount is available