Kim sold an investment property located in Melboume on $15$ May $2023.$ The property was leased for the entire time that Kim owned it$.$ The acquisition and the sale of the property are as follows:

Property Purchase on $10$ June $1990$

Purchase price: $$415,000$

Stamp duty: $$18,500$

Legal costs: $$2,700$

Bank Loan: $$400,000$

Stamp Duty on the mortgage: $$780$

For the year ended $30$ June $2015,$ the following transactions incurred:

Property Renovation: $78,000$

Fines $$18,000$ from the local Council for erecting an illegal pergola in the backyard.

Legal costs $$52,000$ to resolve disputes with neighbour regarding the driveway of the properties. Kim was not awarded legal costs of against her neighbour because she lost the court case.

Sales on $30$ June $2023$ for $$1,500,000.$

Total Interest payments to Commonwealth Bank amounted to $$248,000$ until the property was sold.

Required:

a$.$ Calculate the NET ASSESSABLE CAPITAL GAIN and explain which method you would use to calculate this and why would you use this method.

b$.$ Discuss the tax consequences regarding Kim's capital gain.

This question requires explanation of the legal principles involved as well as calculations.