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Question 2 James owns a 5-storey shop/office building located in Klang, Selangor. The shop/office is erected on a piece of leasehold land having an unexpired term of about 70 years. James has leased the building to Gary since 5 years ago for a term of 15 years at RM30,000 per annum net. Gary sublet the property to William a year ago for a term of 5 years at RM34,000 per annum net. The market rental of similar properties in the vicinity is RM40,000 per annum net. The rate of return of similar properties is 6% per annum and the sinking fund rate is fixed at 3% per annum a) Value all the interest in the subject property. (10 marks) b) If Gary would like to be the owner of the building, determine the maximum and minimum prices that he can offer to James and William and the marriage value between their interests. (10 marks) [Total: 20 marks) Question 2 James owns a 5-storey shop/office building located in Klang, Selangor. The shop/office is erected on a piece of leasehold land having an unexpired term of about 70 years. James has leased the building to Gary since 5 years ago for a term of 15 years at RM30,000 per annum net. Gary sublet the property to William a year ago for a term of 5 years at RM34,000 per annum net. The market rental of similar properties in the vicinity is RM40,000 per annum net. The rate of return of similar properties is 6% per annum and the sinking fund rate is fixed at 3% per annum a) Value all the interest in the subject property. (10 marks) b) If Gary would like to be the owner of the building, determine the maximum and minimum prices that he can offer to James and William and the marriage value between their interests. (10 marks) [Total: 20 marks)