Question Two Because of financial difficulties Simon was forced to dispose of the following asset: He bought an investment property for $660,000 in March 1997. He rented out the property for 5 years and each year he made a rental loss of $2,750 which he claimed as an allowable income tax deduction. He carried out an improvement on the property by adding an extra room at a cost of $178,650 in October 2010 He Managed to sell it for $1,045,000 and signed the contract on 10 May 2018. Settlement date was 31 August 2018. His selling costs were $22,000 He also has a capital loss made in 2016 from the sale of his jet ski of $19,690 He had purchased an antique manuscript which was the original diary of the famous composer Beethoven in 2002 for $7,500. He sold this manuscript in June 2018 for $50,000. He has carry forward collectable losses of $10,000 from the 2014/15 tax year. The CPI index number are: September 1999 is 68.7 March 1997 is 67.1 Required: Assuming Simon wants to minimize his tax liability, calculate his net capital gain or capital loss for the year ending 30 June 2018 using the most appropriate method. Show all calculations. (12.5 Marks)