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6. Tutu Too Sdn Bhd acquired three separate pieces of land in Sabah on 12 January 2011. Te does not own any other chargeable assets.

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6. Tutu Too Sdn Bhd acquired three separate pieces of land in Sabah on 12 January 2011. Te does not own any other chargeable assets. The irst piece of land in Lahad Datu was sold on 12 November 2014, incurring an allowable loss of RM 88,000. The second piece of land in Ranau was acquired for RM900,000. An additional RM 0.000 was incurred on legal fees and stamp duty. Tutu also incurred RM250,000 on roads and drainage and RM400,000 on deepening the monsoon drain. Unfortunately, the drain was destroyed in an earthquake. Insurance compensation of RM165,000 was received for this loss. The bwner of the adjoining and claimed that a part Ranau land rightly belonged to him and the dispute was brought to court. On 16 April 2015, a settlement was reached whereby the neighbour sig egen purchase agreement to acquire whole second and from Tutu for RM2.3 million. In defending its title to the land, Tutu incurred legal fees of RM75,000. 1 The third piece of land in Kinabalu was acquired for RM100,000. Tutu received RM25,000 being a forfeited deposit from an earlier abortive sale. Negotiations are now under way to exchange this third piece of land for land in Kelantan. The prevailing market value of the third piece of land is RM480,000 while the Kelantan land is worth RM800,000. The agreements to effect the exchange will be ready for signature tomorrow. However, the requisite approval from the Sabah State Govemment is only expected to be available in May 2017 Required: (a) Compute the Real Property Gains Tax (RPGT) liability of Tutu Too Sdn Bhd on the disposal of the Ranau land. [26 marks] (b) With reference to the Kinabalu landi () Explain why a disposal will occur, the disposal date and how the disposal price will be determined [10 marks] (ii) Compute the RPGT liability on the disposal, [14 marks]

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