Taxation Law 1 quiz Karen is an Australian resident.

Karen is an Australian resident. She is 50 years of age and born in Ireland. She has decided to sell her Australian assets as she is retiring from her business as a retail owner and going back to Ireland. Karen is selling the following assets: 1. She purchased a home in 1981 for $60, 000 which she used as her main residency. Her home is now worth $100, 000. 2. She purchased a car in 2012 for $25, 000 which is now worth $ 50, 000. 3. Karen started a small retail business herself and now has found a buyer to take over her business for $150,000. The sale price includes $70, 000 for all of the business equipment, which cost $50, 000 and $90, 000 of goodwill. 4. Karen is also selling her furniture for $7, 000. No single item offered for sale cost more than $2, 000. 5. There are also several paintings that she is selling for $35, 000. All of her paintings were purchased in second hand shops and no single painting cost more than $500. The one exception was a painting she purchased direct from an artist for $1,000. This painting is being sold for $5, 000 Based on the above figures, you are required to deal with Capital Gain Tax. You must answer the following questions: 1. What is the Capital gain about the family home? 2. Capital loss or gain incurred from the car. 3. The capital gain related to the business sale. 4. The capital gain after selling furniture. 5. The capital gain concerned with the selling of paintings.