Select the alternative that correctly classifies the statements below:

1. Prior year capital losses become deductions when carried forward to subsequent years.

2. The CGT discount method is available to companies.

3. CGT does not apply to overseas assets held by non-residents.

4. Capital losses from personal use assets can not be offset against capital gains.

5. The indexation method can be applied to calculate CGT on the disposal of an industrial oven owned and used by a restaurant.

Select one:

a. Statements 3 & 4 are all correct.

b. Statements 2, 3 and 4 are all correct.

c. Statements 1, 3 & 5 are all incorrect..

d. Statements 1 and 5 are all correct.

e. Statements 1, 2 & 3 are all incorrect.