On 1 July 1986, Dean acquires a block of commercial property block under a contract of purchase for $750,000. He also incurs stamp duty associated with the purchase of $25,000 as well as conveyancing and legal costs incidental to the purchase of $15,800. These costs were incurred on the date of settlement, which was 1 September 1986. Dean was immediately sued and incurred $50,000 in legal costs defending his right to the commercial property block against a person challenging the legal validity of his title. These costs were paid on 15 February 1987. Ongoing expenses during the ownership period were interest totalling $120,000, deductible repairs to the property of $50,0000 and rates and taxes totalling $85,000. On 7 April 1991, Dean made capital improvements to the building totalling $75,000. On 1 September 2019, Dean sold the commercial property block under a contract of sale for $1.2m. In doing so, he spent $7,5000 in advertising costs in relation to the sale and paid sales commission to the real estate agent of $48,000. The commercial property block had been rented out to tenants for the period of Deans ownership. Dean wants to know whether he is better off using the indexation method for calculating his capital gain or the discount method. Advise Dean and show your capital gains/loss calculation.

For long question.