QUESTION THREE On 3 June 2016. Kylie sold her holiday house for $550,000. The house had been purchased on 1 March 2006 for $360,000. At the time of acquiring the holiday house Kylie incurred $5,000 im stamp duty. $4,000 in valuation costs and $1.000 for a conveyancing kit as she had chosen to do the transfer of the property herself rather than hire a solicitor. On 1 July 2008 Kylie incurred costs of $15,000 in removing an old dilapidated garage from the property. On 1 July 2000 she incurred legal costs of $5,000 in a dispute with her neighbour over the proper location of the boundary separating their respective properties. On 1 February 2010, Kylie spent $40.000 adding a second floor to the holiday house. During the period that she owned the house she had paid a total of $60,000 in interest, rates and insurance She rented the property for six months in the 2008-2009 income year and had claimed $5,000 of the $60,000 in respect of interest, rates and insurance as a tax deduction in her personal tax retum. She used the property solely for her personal use at all other times. Prior to the sale, Kylie granted a $10.500 three month option to purchase the property for $480.000 to a local property developer on 1 January 2016. The option lapsed on 31 March 2016 Kylie retained the $10.500. Her solicitor charged her $500 legal fees to prepare the option contract. At settlement she incurred legal expenses of $2.000 and real estate agent's commission of $8,000 in relation to the sale. She has capital gain of $5,000 from the sale of her father's World War II bravery medal. Kylie sold her motor car, a vintage 1964 MGB for $50.000. She bought the car in May 2002 for $20,000. Kylie has a carry-forward capital loss of $20.000 from the sale of shares in the 2007- 2008 income year. During the 2015-2016 income year Kylie earned $40,000 as a part-time school teacher but she made a loss of $20.000 from the operation of a gymnasium that she owns She started the gymnasium business on 1 July 2015. Kylie has no other deductible expenses and no other income for the financial year. REQUIRED Calculate Kylie's tax payable for the income year ending 30 June 2016