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ABC Inc. has the opportunity to sell its building to James Inc. for $4,300,000. The...

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Accounting

ABC Inc. has the opportunity to sell its building to James Inc. for $4,300,000. The property has a basis of $1,900,000 and the buyer is willing to wait up to six months to occupy the property to allow ABC Inc. with enough time to locate and purchase a new building. ABC Inc. has a marginal tax rate of 35%.

What alternatives has ABC Inc. and what are the tax consequences of the alternatives?

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