Question 3 JK, an entity operating in Country X, purchased land on 1 March 20x6 for $850,000. JK incurred purchase costs of surveyor's fees $5,000 and legal fees $8,000. JK spent $15,000 clearing the land and making it suitable for development. Local tax regulations classified all of JK's expenditure as capital expenditure. JK sold the land for $1,000,000 on 1 February 20x9, incurring tax allowable costs of $6,000. Tax is charged at a rate of 25%. No indexation is allowable on the sale of land. Calculate the capital tax payable by JK on the disposal of the land. (10 marks)