Kieran regularly buys horses for the purposes of resale to make a profit in his business. On 5 June of the previous income year he bought five horses for $15 000 each. On 15 December of the current income year he sold all five horses for $18 000 each and incurred agent’s commission of $600 for each. The costs of maintaining the horses with hay, grain and pasture for the period of ownership was $6000. He paid a total of transport costs of $400 to bring the horses to and from the saleyards. 

What was Kieran’s capital gain/(loss) under Division 102 ITAA97 as a result of the disposal ?

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