Question 1 (35 marks) Unicorn Toys Manufacturing Limited was incorporated in Hong Kong in 1996. The company was formed to take over the partnership business owned by the Lam's brothers, Albert Lam and Bernard I am Albert and Bernard each owns 40% of the shares of the company and the remaining of the 20% of the shares are owned by their sister, Crystal. The original Board of Directors consists of Lam's brothers and their sister, Crystal. In addition to being directors o the company, Albert and Bernard are responsible for the running of the company. Albert is the managing director and is responsible for the sales operations. Bernard holds the title of finance manager and is in charge of the company's finance. Their brother-in-law, Dickson Tang is employed as the production manager to oversee the manufacturing operations. The company has been profitable with the annual turnover over HKS20 million. The profits of the company have been mainly derived from exporting toys manufactured to overseas countries. The manufacturing operations had been carried out in Hong Kong until 31 July 2016 when the company moved its manufacturing operations to Mainland China. Before 31 July 2016 the manufacturing operations were carried out in three factory units in Kwai Chung. These units are of equal value and were purchased by the company in 2012 at a total cost of $15 millions, half of which is attributable to the land. They are used for different purposes after 31 July 2016 Uni1This unit is used for storage of materials waiting to be shipped to factory in China and finished products returned from China. Final processing and additional packaging work are carried out on the finished products in this unit before they are exported to overseas customers. Unit 2: This unit has been let out to a tenant who operates retail stores. The unit has been used by the tenant to store goods imported from overseas. Unit 3: This unit had been left vacant till January 2017 when it was sold for $6 millions Question 1 (35 marks) Unicorn Toys Manufacturing Limited was incorporated in Hong Kong in 1996. The company was formed to take over the partnership business owned by the Lam's brothers, Albert Lam and Bernard I am Albert and Bernard each owns 40% of the shares of the company and the remaining of the 20% of the shares are owned by their sister, Crystal. The original Board of Directors consists of Lam's brothers and their sister, Crystal. In addition to being directors o the company, Albert and Bernard are responsible for the running of the company. Albert is the managing director and is responsible for the sales operations. Bernard holds the title of finance manager and is in charge of the company's finance. Their brother-in-law, Dickson Tang is employed as the production manager to oversee the manufacturing operations. The company has been profitable with the annual turnover over HKS20 million. The profits of the company have been mainly derived from exporting toys manufactured to overseas countries. The manufacturing operations had been carried out in Hong Kong until 31 July 2016 when the company moved its manufacturing operations to Mainland China. Before 31 July 2016 the manufacturing operations were carried out in three factory units in Kwai Chung. These units are of equal value and were purchased by the company in 2012 at a total cost of $15 millions, half of which is attributable to the land. They are used for different purposes after 31 July 2016 Uni1This unit is used for storage of materials waiting to be shipped to factory in China and finished products returned from China. Final processing and additional packaging work are carried out on the finished products in this unit before they are exported to overseas customers. Unit 2: This unit has been let out to a tenant who operates retail stores. The unit has been used by the tenant to store goods imported from overseas. Unit 3: This unit had been left vacant till January 2017 when it was sold for $6 millions