Question 20 On 1 July CY, John also sold a house for $610,000 that he had rented out in the past. He had purchased this asset for $545,000 on 4 November 2009 during the period of ownership, John replaced the worn-out bedroom carpets for $4,000 and he repaired the outdoor verandah for $10,000 following rain damage sustained in a major storm. He also had paid rates and taxes totalling $12,000 throughout the period of ownership. Based on the above facts and relevant tax laws, how would the sale of this house be treated for tax purposes? (Select the best answer) A.A capital gain of $39,000 would recognised in line with CGT event A1 B.A capital gain of $19,500 would be recognised in line with CGT event A1 and following application of the 50% general discount C.A capital gain of $30,500 would be recognised in line with CGT event A1 and following application of the 50% general discount D.A capital gain of $24,500 would be recognised in line with CGT event A1 and following application of the 50% general discount