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Part B OMG is in a country which has a capital gains tax,...

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Accounting

Part B
OMG is in a country which has a capital gains tax, conducted the following transactions:
a. Purchased a building in February 2018 for $26,000,000. In March 2019, the company
spent $2,000,000 to install solar panels for electricity in the building. The building was
sold for $28,500,000 in 2021. The annual maintenance cost was $500,000. The cost of
advertising the sale of the building and the legal fees amounted to $1,500,000.
b. A motor vehicle was purchased for $5 million on January 1,2018. The vehicle was sold
in 2021 for $4.5 million.
c. Bought an antique painting for $3.5 million in 2019. The painting was sold in 2021 for
$10 million.
d. Purchased a government bond for $5,000,000 in 2018 and sold it for $7,500,000 in 2021.
The company is entitled to an Annual Exemption of $500,000. Capital losses as of 1 January
2021 were $1,500,000.
Calculate the capital gains tax in 2021, assuming a capital gains tax of 15%.
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