ACY3161ass4_1112_1st

ACY3161ass4_1112_1st - THE CHINESE UNIVERSITY OF HONG KONG...

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THE CHINESE UNIVERSITY OF HONG KONG School of Accountancy ACY 3161 – Taxation (1 st Term, 2011-2012) Assignment 4 Due Date: November 14, 2011 (Monday) 4:00 p.m. Question 1 Investment House Limited sold an investment property in 2010/11 with the following information : (1) The property was acquired on 1 January 2009. A down payment of $6,000,000 was made. Another $20,000,000 was made within 14 days . (2) The property was originally intended for redevelopment into a commercial building for rental per minutes of directors' meeting dated 1 January 2009. There were no formal studies on the redevelopment plan . (3) A loan of $20,000,000 (at prime rate + 3%) from Bank ABC repayable in 8 years was originally obtained to finance the purchase of the property. (4) The property was sold on 31 October 2010 at the sale price of $36,000,000. Investment House Limited was approached by a property agent without any active searching work of its own . (5) The sale was approved by directors' meeting on 31 October 2010, after the second redevelopment
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This note was uploaded on 02/04/2012 for the course ACCT 3161 taught by Professor Kwong during the Spring '11 term at CUHK.

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ACY3161ass4_1112_1st - THE CHINESE UNIVERSITY OF HONG KONG...

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