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David is the only member ofElandCC、ElandCC、is the registered owner of a game farm.David wants to sell the game farm to FreD、Fred does not have sufficient funds to pay for the game farm in cash and he has to apply to GrandBank for a mortgage bond to finance the purchase. In order to save the exorbitant transfer duties payable on the transfer of land,David and Fred decide that Fred would simply buyDavid’s member’s interest inElandCC、and then apply for the mortgage bond to finance the purchase of the member’s interest.Required:Analyse the above scenario and comment on the validity of the transaction. (10 marks)

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