Required: Showing workings, discuss Alex's capital gain or loss for both houses (citing authority where appropriate). You are not required to discuss the application of the 50% CGT discount, or the impact of Division 43 of the ITAA 1997.

Alex inherits the following during February 2022 from his aunt:

• House A, which the aunt had purchased for $100,000 in January 1985. The aunt had used House A as a rental property for the full time she owned it. Its market value at the time of her death was $1 million.
• House B, which the aunt had purchased for $800,000 in 2010, and had used as a rental property for the full time she owned it. Its market value at the time of her death was $1.5 million.

During the time Alex owned these 2 houses, he used both houses as rental properties.

During May 2024, Alex made the following sales:

• House A was sold for $1.3 million
• House B was sold for $1.7 million