PART B / BAHAGIAN B INSTRUCTIONS / ARAHAN Part B contains TWO questions. Answer ALL. Bahagian B mengandungi DUA soalan. Jawab SEMUA. QUESTION/SOALAN MARKS/MARKAH 1. Zainal was running a business engaged in the real estate. The business owned few pieces of land and some of them were developed into residential areas and put up for sale. The generated sale proceeds were subjected to income tax. There was another lot of land, bought in year 2005 and was not developed. Zainal intended to build his family home on that land but never made the intention known by others. In year 2015, Zainal passed away and his wife, Sharifah inherited his business since then. The undeveloped land was classified as non-current assets in the statement of financial position of the business. Sharifah is in severe financial problem. Therefore in year 2016, Sharifah disposed the land for RM1 million when approached by a purchaser. The sales proceed was used to pay off her debts. In 2016, Inland Revenue assessed the gains arising from the sale proceed to income tax. Sharifah is objected the assessment but she is having very limited knowledge on this matter. Required: By referring to the badges of trade, infer your opinion to Sharifah pertaining to the income from the disposal of the land. (Total / Jumlah: 20)