Mr Musho is an insurance consultant. On 1 November 2002, he purchased a piece of land for R200 000. His intention was to erect his primary residence on this piece of land. He commenced building the house on the property on 1 April 2003. The house was, however, only completed on 1 September 2004, at a cost of R880 000, on which date they moved into the house. An additional living room was added to the house at a cost of R260 000. Work on the addition commenced on 3 January 2007 and was completed on 18 February 2007. While the builders were busy on the premises, they fixed the leaking roof at an additional cost of R25 000. From 1 April 2005 Mr Musho used some of the rooms in the house as an office from where he operated his insurance consulting business. Throughout the period, he used approximately 10% of the floor space of the house for business purposes. Every year Mr Musho claimed 10% of the costs of the house as an income tax deduction. On 10 January 2020 the residence was sold for R2 500 000. The registration of the transfer of ownership took place on 10 March 2020. 

YOU ARE REQUIRED to calculate the taxable capital gain for the current year of assessment. (Round your calculations to the nearest rand).

Select one:

a. R 30 400

b .R 116 000

c .R 76 000

d .R Nil