#5) it a few Mr. Willis had purchased an apartment block in 2000 for $195,000. At the time of purchase $120,000 was allocated for the building and $75,000 for the land. The UCC for the Class 1 (4%) asset is currently $87,500. Currently, there is a new development being proposed for the area. Mr. Willis has been approached by the developers to sell his apartment block for $500,000. This offer is allocated as $0 for the building and $500,000 for the land. REQUIRED: Advise Mr. Willis of the tax consequences of the sale if he accepts the developer's offer in 2017. 002.106