Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. an owner, who bought an industrial building withou

An owner, who bought an industrial building without financing on January 1st eight years ago...

60.1K

Verified Solution

Question

Accounting

An owner, who bought an industrial building without financing on January 1st eight years ago for $8,000,000 is selling the property on December 31st of the current year for $8,900,000 and will incur a cost of sale of 3 percent of the sale price. The property allocation was 70 percent for improvements and 30 percent for land at the time of purchase. The owner's tax rates are 35 percent for ordinary income, 25 percent for cost recovery recapture, and 20 percent for capital gain from appreciation. What are the proceeds after tax for this sale?
$8,633,000
$6,863,312
$8,900,000
$8,222,316
image

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Psychology
1.2K views

Explain how Burberry became a first mover to millennials in the digital market.

Geometry
1.2K views

A straw is placed inside a rectangular box that is 9 inches by 7 inches...

Basic Math
1.2K views

es Factor Company is planning to add a new product to its line To manufacture...

Basic Math
1.2K views

an wants to measure the height of a nearby tower He places a 9 ft...

Basic Math
1.2K views

Which is a pair of corresponding angles 5 1 6 2 A angle 1 and...

Calculus
1.2K views

Find the area of the region between the curves y and y x Area between...

Algebra
1.2K views

The substitution zwy 2 transforms the non linear DE y a x y b x...

Algebra
1.2K views

State the domain vertical asymptote and end behavior of the function g x ln 4x...

Accounting
1.2K views

FIFO Perpetual Inventory The...

Accounting
1.2K views

At the beginning of 2016, Copland Drugstore purchased a new computer system for $52000. It...

Accounting
1.2K views

Selected sales and operating data for three divisions of different structural engineering firms are given...

Accounting
1.2K views

USAco, a domestic corporation, forms a Canadian subsidiary, CANco, to distribute USAco