Mellisa Lewis is a tax accountant who is planning her retirement in late 2019. Since moving to Australia from England in 1985, Mellisa has invested in the property market and began selling some of her assets in 2019.During the 2019 financial year the following event occurred:Sale of an investment property for $950,000. The contract was signed on 10 May 2019 and settlement on the property occurred on 1 July 2019 when Mellisa received the cash in her bank account.Details of the property are as follows:a) Land purchased on 1 June 1985 for $225,000.b) Construction of 3 bedroom house for $180,000 one year after land purchase.c) Yearly rent on this property is $30,000, paid monthly. The property was only rented for 9 months of the year.d) Loan interest expense paid on the property for the year was $8,000.e) Mellisa engaged a property agent who provided her with a property expense report showing total expenses of $2,500 while the property was leased. No repairs of a capital nature occurred on this property during the year.f) Agent fees on sale totalled $14,000.Required:Calculate Mellisa’s capital gain for the year ended 30 June 2019

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Capital gains is computed as follows Sa... View the full answer