Showingworkings and citations, calculate Betty's net capital gain or loss (assumingshe has no other CGT events) as a result of the sale of the Rye House (4 marks).

Betty entered into a contract for the purchase of a house in Rye on 20 September 1987 and settlement was on 1 December of the same year ('Rye House'). She purchased the Rye Housefor $300,000 and at that time incurred legal costs of $1,500. She decided to rent the house out straight away.

In May 2020 Betty decided to sell the Rye House so that she could start a business. She incurred marketing (advertising fees) of $5,000 relating to the sale. She ultimately decided to sell the house to her brother for $800,000. Market value at the time was $950,000 but she wanted to give her brother a good deal as he did not have a lot of money.