Jack purchased some land in July 1984 for $50,000 and in May 2020 he sold this land for $500,000. Which of the following statements is true in respect to the sale of this land?
A) There will be a capital gain of $450,000 on the sale of this land
B) As the land was acquired before 20 September 1985 any capital gain or loss on the sale is disregarded
C) There will be a net capital gain of $225,000 on the sale of this land
D) Indexation or the discount method can be used on the sale of this land to reduce the capital gain
Correct Answer:
Verified
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