Part A (8.5 Marks) Sam is your client and has come to you to prepare his tax return. During the 2019-20 financial year, Sam has disposed of the following assets: a. Sam purchased a yacht in May 2017 from an auction warehouse for $25,000. Sam has spent $35,000 on improvements to the yacht. In June 2020, Sam sells the yacht for $45,000 b. Sam purchased a vacant block of land in May 1991 for $250,000. In April 1998 Sam subdivides the vacant block of land into two equal portions. The value of the portion is 5200,000 each in May 2020 the vacant blocks of land for $300,000 c. Sam acquired block of land for $80,000 on the 10th October 1978. On the 20th June 1990 Sam builds a house on the same block of land for $550,000. in 10th May 2020 Sam sales the house and the During the period 20th June 1990 and 10th May 2020 the property was rented to an unrelated party. Required: Calculate Sam's Capital Gain, subject to Tax for the year ending 30th June 2020. Justify your calculations using legislation and case law. Part A (8.5 Marks) Sam is your client and has come to you to prepare his tax return. During the 2019-20 financial year, Sam has disposed of the following assets: a. Sam purchased a yacht in May 2017 from an auction warehouse for $25,000. Sam has spent $35,000 on improvements to the yacht. In June 2020, Sam sells the yacht for $45,000 b. Sam purchased a vacant block of land in May 1991 for $250,000. In April 1998 Sam subdivides the vacant block of land into two equal portions. The value of the portion is 5200,000 each in May 2020 the vacant blocks of land for $300,000 c. Sam acquired block of land for $80,000 on the 10th October 1978. On the 20th June 1990 Sam builds a house on the same block of land for $550,000. in 10th May 2020 Sam sales the house and the During the period 20th June 1990 and 10th May 2020 the property was rented to an unrelated party. Required: Calculate Sam's Capital Gain, subject to Tax for the year ending 30th June 2020. Justify your calculations using legislation and case law