There are Four short questions and you are required to write a brief response to each question (10 Marks)

a) In June 2018, Tina enters into a contract to sell a block of land. The contract was settled in August 2019. In which year Tina made the capital gain and why? (2.5 Marks)

b) Tony owned a rental property that was destroyed by a bush fire in December 2019. He received a payment under an insurance policy in July 2020. What CGT event has happened due to the above scenario and in which income year the CGT event has occurred? (2.5 Marks)

c) Virat bought a rental property for $300,000. Right after purchasing the property, he has bought a kitchen set up for $20,000 and new toilet fittings for $5000. After a year Virat sold the property for $700,000. Which items will constitute the Cost base and what would be the amount? (2.5 Marks)

d) Tony purchased 500 shares in October 2019 and sold all these shares in March 2020. Tony made a profit by selling these shares. Which CGT calculation method Tony is eligible to apply and why? (2.5 Marks)