b. Kim and Liang incorporated Musang King Sdn Bhd on 1.4.2016 to acquire durian plantations in Gua Musang, Kelantan. The company acquired several pieces of agricultural land at RM2 million and embarks on durian plantation. The land acquisition is financed by share capital as follows: Kim (30%) Liang (70%) On 1.1.2020, Kim wishes to dispose the shares to Pink at a consideration of RM1.8 million, based om market value of the durian plantation of RM 6 million. Required: i) RM'000 600 1,400 2,000 ii) Advise the tax implication on the disposal of shares to Pink. (Include computation of disposal of RPC shares that subject to RPGT) Advise Pink on the RPGT responsibility towards the acquisition of shares.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question
b. Kim and Liang incorporated Musang King Sdn Bhd on 1.4.2016 to acquire
durian plantations in Gua Musang. Kelantan. The company acquired several
pieces of agricultural land at RM2 million and embarks on durian plantation.
The land acquisition is financed by share capital as follows:
RM'000
Kim (30%)
600
Liang (70%)
1,400
2,000
On 1.1.2020, Kim wishes to dispose the shares to Pink at a consideration of
RM1.8 million, based om market value of the durian plantation of RM 6 million.
Required:
i)
Advise the tax implication on the disposal of shares to Pink.
(Include computation of disposal of RPC shares that subject to RPGT)
ii)
Advise Pink on the RPGT responsibility towards the acquisition of
shares.
Transcribed Image Text:b. Kim and Liang incorporated Musang King Sdn Bhd on 1.4.2016 to acquire durian plantations in Gua Musang. Kelantan. The company acquired several pieces of agricultural land at RM2 million and embarks on durian plantation. The land acquisition is financed by share capital as follows: RM'000 Kim (30%) 600 Liang (70%) 1,400 2,000 On 1.1.2020, Kim wishes to dispose the shares to Pink at a consideration of RM1.8 million, based om market value of the durian plantation of RM 6 million. Required: i) Advise the tax implication on the disposal of shares to Pink. (Include computation of disposal of RPC shares that subject to RPGT) ii) Advise Pink on the RPGT responsibility towards the acquisition of shares.
Expert Solution
steps

Step by step

Solved in 4 steps with 1 images

Blurred answer
Knowledge Booster
Consolidations
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education