QUESTION 20

1. Ralph is the owner of a business that sells clothing. You have determined that he has an annual turnover of $3 million and his net asset value is $7 million. Which of the following is correct?

   		Ralph cannot claim the general small business entity concessions while he is a going concern, but he can claim the capital gains tax small business concessions when he sells the business.
   		Ralph can claim the general small business entity concessions while he is a going concern as well as the capital gains tax small business concessions when he sells the business.
   		Ralph can claim the general small business entity concessions while he is a going concern as but not the capital gains tax small business concessions when he sells the business.
   		Ralph can claim neither the general small business entity concessions while he is a going concern nor the capital gains tax small business concessions when he sells the business.