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Manny received an amount from the following transactions during the 2018 income year: Sale of a painting on 1 April 2021 for $125,000. The painting

Manny received an amount from the following transactions during the 2018 income year: Sale of a painting on 1 April 2021 for $125,000. The painting was purchased by Manny on 11 January 1988 for $27,000. He paid a seller's commission to the auctioneer of $1,000 on the same date. Required: Explain how the capital gain is calculated using the indexation method. Can Manny still reduce the capital gain by 50% if the indexation method is used?

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