QUESTION 3 Mr. Toller is a Canadian citizen. He possesses a…

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Question QUESTION 3 Mr. Toller is a Canadian citizen. He possesses a… QUESTION 3Mr. Toller is a Canadian citizen. He possesses a permanent residence status in Malaysia sincethe year 2009.On 6 January 2016, Mr. Toller signed an agreement with Madam Lim for a piece of 5.5-acreland in Mukim Kuala Selangor for RM604,460. Mr. Toller had paid RM45,330 as deposit andwould be financing the balance by way of a bank loan. Madam Lim transferred the propertyto him on 4 April 2016 after receiving the full payment on 25 March 2016. Throughout theacquisition process, Mr. Toller had incurred legal fees of RM7,908 and stamp duty ofRM6,302.In the year 2017, Mr. Toller had spent RM19,450 to level the land. He also incurred anotherRM11,220 to install a drainage system and fencing around the property. During 2018, Mr.Toller faced a legal challenge over the title of his property from the son of late Madam LimMr. Toller had to engage a lawyer to defend his right, which costed him RM8,340.In September 2019, his land was inundated by flood due to the high tide phenomenon. Hereceived an insurance compensation of RM13,125 for the resultant damages. Five monthslater, a landslide damaged Mr. Toller’s property due to an improper land reclamation projectadjacent to his plot. The project developer decided to settle the matter out-of-court andcompensated Mr. Toller RM35,945.In May 2020, Mr. Toller decided to sell off the land and advertised his intention accordingly.Mr. Melvin Teoh from Sabak Bernam responded and agreed to pay a deposit of RM50,750.However, Mr. Melvin’s loan application was unsuccessful and he had to forfeit his deposit.Another prospective buyer, Puan Nurlina had agreed to buy the land from Mr. Toller forRM729,500 in cash. Both Mr. Toller and Puan Nurlina signed the agreement on 15 August2020 and the payment was made in the same day. The title was then transferred to PuanNurlina on 1 September 2020.The entire sales process had costed Mr. Toller RM4,909 for valuation fee, RM1,350 foradvertising expense, RM6,001 for real estate agent fee, and RM5,920 for legal fees. Also, upto the time of land sale, Mr. Toller had incurred a total interest charge of RM81,975 on theloan he took upon its acquisitionRequired:Compute the real property gains tax payable by Mr. Toller upon the disposal of his land.  APPENDIX   Business Finance ACCOUNTING BAC 3644 Share QuestionEmailCopy link Comments (0)