Miguel owns an antique vase which is about 200 years old. He paid the market value of $100,000 to acquire the vase 5 years ago.

On the night of 12 November 2018, there was a fire on Miguels premises and the vase was destroyed along with other property.

Miguels insurance company paid him $75,000 on 6 July 2019, under his insurance policy.

Which of the following statements is TRUE?

Select one:

None of these

Miguel will incur a capital loss of $25,000 in the 2018/19 financial year.

Miguels insurance company has incurred a capital loss of $75,000 in the 2019/20 year.

Miguel will incur a capital loss of $25,000 in the 2019/20.

Miguel has incurred a capital loss of $100,000 in the 2018/19 financial year, and a capital gain of $75,000 in the 2019/20.