(a) Jasper intends to sell certain real estate and facilities held by the Assembly Division at an after-tax pro?t of $935,000. The proceeds of this sale will be used to retire outstanding debt (described in c below)

1. Determine the cost and tax basis of the land:

2. Determine the market value of the real estate:

3. Determine the authorization responsibility for use of the proceeds:

4. Determine the after-tax profit and proceeds:

(c) Jasper will call and retire all outstanding 6% subordinated debentures (callable at 104). Given the present interest rate of 5% on similar debt, it is expected that the debentures will require the full call premium. A rise in market interest rates to 6% would reduce the loss on bond retirement from the projected $75,000 to $65,000.

1. Determine what amount is adequate for bond repurchase:

2. Determine the authorization responsibility for the retirement:

3. Determine the most probable cost of repurchasing the bonds: