2 Smarter Technology Sdn Bhd ('STSB') was incorporated on 1 June 2016. The paid-up ordinary share capital of STSB is RM2 million. It is 60% owned by Mr Haa and 40% owned by his wife, Ms Hee. On 1 December 2018, Mr Haa transferred his residential house to STSB at market value for a cash consideration of RM800,000. It was the first property acquired by STSB. On that day, the total tangible assets including the residential house is RM1,800,000. On 31 December 2019, a shophouse was transferred to STSB from an associated company for a cash consideration of RM4,000,000. The cash was from the partial withdrawal of a fixed deposit with a local bank. The market value of the shophouse on 31 December 2019 was RM4,200,000. Just before 31 December 2019, STSB has assets as follows: Assets 1. A residential house 2. Fixed deposits with a local bank (Note) 3. Plant & machinery and motor vehicles 4. Investment in listed shares 5. Scientific patents Note: Market value (RM) 900,000 4,500,000 300,000 200,000 500,000 RM4,000,000 was withdrawn on 31 December 2019 for the acquisition of a shophouse. On 1 January 2022, STSB disposed its residential house for RM1.2 million to Mr Chong who is also a close friend of Mr Haa. On that day, the other tangible assets in STSB amounted to RM6,100,000 which includes the market value of the shophouse of RM4,400,000. A month later, Mr Chong purchased Ms Hee's 40% shareholdings in STSB for RM2.2 million. Required: (a) Explain whether Smarter Technology Sdn Bhd was a real property company on/before 31 December 2019 and 1 January 2022. (b) Compute the real property gains tax of the following disposal to Mr Chong: a. The residential house by STSB (10 marks) (2 marks) b. The 40% shareholdings in STSB by Ms Hee (3 marks) (c) Explain the RPGT implications to Mr Chong should he dispose his shares in STSB in later years. (5 marks) [20 Marks] [Total: 40 marks]