3. On 15 May 2015, Mary purchased a house in Semenyih, Selangor for MYR250,000. She took a bank loan to finance the purchase. The full payment for the house was settled by the bank to the seller on 30 June 2015. The following costs were incurred by her in regards with the purchase of the house: Stamp duty on sale and purchase agreement Legal fees on sale and purchase agreement Stamp duty on loan agreement Legal fees on loan agreement Renovation cost of the kitchen MYR 14,600 5,800 8,200 2,300 20,700 On 1 August 2015, she rented the house to some students from the University of Nottingham and earned rental income of MYR2,200 per month. On 1 July 2017, she transferred the house to her son, Mathew, as his wedding gift. The bank loan was transferred to Mathew. She has paid monthly interest of MYR210 on the bank loan prior to the transfer. Annual quit rent and assessment fee for the house were MYR950. Mathew stayed in the house until he disposed it to Candy for MYR556,000 on 31 October 2020. In addition, he also sold the grass cutter machine for MYR2,750 to Candy. He purchased the machine for MYR3,600 on 1 September 2017. Mathew incurred a valuation fee of MYR12,200, and stamp duty and legal fees for sale and purchase agreement of MYR8,550 and MYR2,600 respectively. In addition, he incurred an agent commission fee of MYR5,000 for the disposal. In addition, during the period Mathew owned the house, he incurred the following expenses: Interest on bank loan Cleaning and maintenance expenses Quit rent and assessment fees Changing and upgrading the quality of floor tiles MYR 7,400 1,400 3,150 8,000 Required: (a) Discuss the income tax implications of Mary for the relevant years of assessment. Show all relevant workings. [7 marks] (b) Compute the real property gain tax liability (RPGT) for Mary and Mathew respectively, whenever it is relevant. Show all relevant workings. [8 marks] (c) Discuss the RPGT responsibility of Candy on the house purchase. [3 marks] Discuss the tax implication on Mathew for the disposal of grass cutting machine, if relevant. [3 marks] [Total: 21 marks] (d) 3. On 15 May 2015, Mary purchased a house in Semenyih, Selangor for MYR250,000. She took a bank loan to finance the purchase. The full payment for the house was settled by the bank to the seller on 30 June 2015. The following costs were incurred by her in regards with the purchase of the house: Stamp duty on sale and purchase agreement Legal fees on sale and purchase agreement Stamp duty on loan agreement Legal fees on loan agreement Renovation cost of the kitchen MYR 14,600 5,800 8,200 2,300 20,700 On 1 August 2015, she rented the house to some students from the University of Nottingham and earned rental income of MYR2,200 per month. On 1 July 2017, she transferred the house to her son, Mathew, as his wedding gift. The bank loan was transferred to Mathew. She has paid monthly interest of MYR210 on the bank loan prior to the transfer. Annual quit rent and assessment fee for the house were MYR950. Mathew stayed in the house until he disposed it to Candy for MYR556,000 on 31 October 2020. In addition, he also sold the grass cutter machine for MYR2,750 to Candy. He purchased the machine for MYR3,600 on 1 September 2017. Mathew incurred a valuation fee of MYR12,200, and stamp duty and legal fees for sale and purchase agreement of MYR8,550 and MYR2,600 respectively. In addition, he incurred an agent commission fee of MYR5,000 for the disposal. In addition, during the period Mathew owned the house, he incurred the following expenses: Interest on bank loan Cleaning and maintenance expenses Quit rent and assessment fees Changing and upgrading the quality of floor tiles MYR 7,400 1,400 3,150 8,000 Required: (a) Discuss the income tax implications of Mary for the relevant years of assessment. Show all relevant workings. [7 marks] (b) Compute the real property gain tax liability (RPGT) for Mary and Mathew respectively, whenever it is relevant. Show all relevant workings. [8 marks] (c) Discuss the RPGT responsibility of Candy on the house purchase. [3 marks] Discuss the tax implication on Mathew for the disposal of grass cutting machine, if relevant. [3 marks] [Total: 21 marks] (d)