Question 4 (15 marks) You are handling the conveyancing of the sale of the vacant land in Question 1 for $1.5M and the seller would like a rough estimate of CGT liability (since you have studied some taxation law). He understands that you are not a tax professional. The following details are given: Acquisition price of $800,000 (10 years ago) Council rates over 10 years, $23,000 Clearing trees, bush and building a gravel road, $75,000 Agents commission on sale, $45,000 (3% of sales price) Legal costs (for both buying $5,000 and selling $15,000): $20,000 Transfer duty on original purchase, $31,500 Legal costs to resolve a dispute with a neighbor over the boundary of the property, $25,000 Wood fencing installed over the years, $30,000 ($15,000 of depreciation has been deducted over the past 10 years) You are required to: a) Explain the considerations in calculating a capital gain or loss b) Identify the CGT event c) Identify, explain and calculate the different elements of the cost base d) Provide details of the cost base calculations e) Calculate the current and net capital gain or loss Support all statements, conclusions and calculations from relevant tax law source