PART D Several years ago, the company's CEO, Carlo purchased a house near the beach which he only makes available for use by his nephew Jimmy, and Jimmy's family. The purchase price was $3 million and Carlo was required to pay $230,000 stamp duty on the transfer. He borrowed money from a bank to fund the purchase price and paid $400,000 in interest on the loan. In February 2023, he also paid $80,000 to a builder to renovate the bathrooms. In addition he paid $50,000 in legal fees to make an objection blocking a proposed development nearby which would have obstructed the house's charming beach views. On 7 June 2023 Carlo entered into a contract of sale of the property to a third party at the market value of $4 million. Settlement occurred in August 2023. Required: Prepare GSW's Memorandum of Advice. Advise Armani Enterprises Pty Ltd, Carlo and Joe regarding the following in relation to the 2022/23 income year: A) the capital gains tax (CGT) implications in relation to the sale of the beach house, arising from the facts in PART D. In your answer make sure you identify any relevant CGT Event, identify each element of the cost base and show your calculation of any relevant capital gain/loss.Note: Students are required to answer ALL parts of the assignment question. In your answers to the above, make sure you apply the HIRAC methodology and refer to any relevant cases, legislative provisions, tax rulings and principles of tax law. As this is a research assignment, students are also expected to go beyond the course content and conduct independent research in order to answer the assignment question.