Steve and Carol Lee are your clients and they have come to you to prepare their tax returns. During the 2022-23 financial year, Steve and Carol disposed of the following assets that they owned jointly due to a relationship breakdown: (a) An investment apartment in Brisbane owned as joint tenants. The apartment was purchased on 1 October 2018 for $550,000 and sold for $950,000. The contract of sale was entered into on 8 June 2023 and settlement is to take place on 15 September 2023. The stamp duty and legal fees at the time of acquisition were $25,000. The advertising and estate agents fees at the time of disposal were $6,000. Steve and Carol rented the apartment for the total time that they owned it and always claimed the expenses as a deduction. During this period, they derived rent of $150,000. During that period that they owned the apartment they paid a total of $175,000 in interest, local council rates and insurance. When the settlement finally takes place, they will need to repay their mortgage of $450,000. This amount is still owed at the date of the contract. (b) Vacant Land. Steve and Carol sold vacant residential land originally purchased on 16 July 1984 for $100,000. They owned this land as joint tenants. They initially intended to build a house on the land but lacked the finance to do so. The land was sold for $650,000 on 20 June 2023. (c) A Ferrari motor car that is 66 years old. The motorcar was purchased by Steve and Carol for $180,000 on 1 July 2016. They own this motor car as joint owners. It was a special and rare motorcar with only 4 made in 1956. It was sold for $420,000 on 12 December 2022. (d) A painting. The painting was purchased by Steve and Carol for $120,000 on 1 May 2009 and sold for $300,000 on 30 April 2023. The painting was by Arthur Streeton. (e) A motor yacht. Steve and Carol used the boat for recreational purposes. They bought the boat on 1 May 2020 for $160,000. They were both joint owners of the boat. They sold the boat for $186,000 on 26 March 2023. (f) On 1 July 2012, Steve and Carol purchased a house for $380,000, which they used as their main place of residence. They owned this property as joint tenants. On 1 July 2018 they both left Australia to take up jobs in Oman. During their stay in Oman, they did not buy a house, but instead lived in rented accommodation. They returned to Australia and began living in the house again on 30 June 2021. During their absence from Australia, a friend lived in the house and paid Steve and Carol rent of $12,000 per year. Their friend also paid all the outgoings on the house such as the rates, insurance, and electricity. The house was sold for $960,000 on 26 May 2023. (g) Shares in BHP. Steve and Carol bought BHP shares on 2 June 2022 for $45,000. The shares were bought in their joint names. They sold those shares on 2 May 2023 for $90,000. Steve and Carol have capital losses from previous years of $32,000 from the sale of shares and $13,000 capital loss from the sale of a painting by Roberts. They each have an entitlement to 50% of the losses. During the financial year, Carol received a salary of $154,746 from her position as the manager of a small engineering consulting practice. She received a travel allowance of $1,400 for the year and claimed a total of $2,365 as the actual expenses. She has no other deductions. Her employer withheld $29,000 as PAYG W. Steve received a salary of $138,430 from his employment as a consultant engineer and has deductions of $2,549 as work-related expenses. His employer has withheld $28,500 as PAYG W. Steve and Carol have private health insurance. REQUIRED: Calculate Steve and Carols tax payable for the year ending 30 June 2023. You will need to prepare separate calculations for both Steve and Carol. They owned all of the assets jointly. Resident tax rates 202223 Taxable income Tax on this income 0 $18,200 Nil $18,201 $45,000 19 cents for each $1 over $18,200 $45,001 $120,000 $5,092 plus 32.5 cents for each $1 over $45,000 $120,001 $180,000 $29,467 plus 37 cents for each $1 over $120,000 $180,001 and over $51,667 plus 45 cents for each $1 over $180,000 The above rates do not include the Medicare levy of 2%.