Problem 5: (10 points) Housing-maker Ltd is a property developer. It acquired a land use right from the government in January 2017 and developed an office building on the land which was completed in January 2018. Housing-maker Ltd sold the office building to P-buy Ltd in January 2018. The following information, relating to the office building, is taken from the records of Housing-maker Ltd:- RMB million 200- 320 60 Land use right from government Construction costs Interest, administrative expenses and overheads Selling price of office tower, inclusive of value added tax (VAT) of RMB 50 million- Other taxes paid: -Deed tax+ - Surtaxes on VAT. 900 9 P-buy Ltd purchased the office building for RMB850 million exclusive of VAT and paid deed tax of RMB32 million. It financed part of this purchase by taking out a one- year loan of RMB 700 million with a financial institution on 1 January 2018 at an interest rate of 10% per year. However, P-buy Ltd could not pay the loan by the due date and as a result, on 1 January 2019, the financial institution took over the office building as payment of the loan and interest. + Wia) Taxation--A The office building revalue, after discount, was RMB890 million. P-buy Ltd paid VAT of RMB 90 million and surtaxes on VAT of RMB 12 million. The office building qualifies as 'used property' for land appreciation tax purposes. Requirement: (a) Calculate the land appreciation tax (LAT) payable by Housing-maker Ltd on the sale of the office building in January 2018. (6 points) (b) Calculate the LAT payable by P-buy on transfer of the office building to the financial institution on 1 January 2019. (4 points) +