Q1 (Disposal of two assets)

On 10 April 1988, Penny Pleb, an Australian resident, purchased a block of land for $74,000 as an investment. On 19 February 2018, she sold the land for $125,000.

Penny also sold shares in Prosperous Ltd for $32,000 on 1 August 2017. The shares had cost Penny $8,000 on 17 July 2009. Penny did not dispose of any other assets during the year, nor did she have any capital losses from previous years.

Required:

Calculate the minimum net capital gain for the 2017/18 tax year. Use a combination of the indexed and discount methods, where allowed. (Show your workings).