An owner, who bought an apartment complex without financing on January 1^st five years ago for $5,000,000 is selling the property on December 31^st of the current year for $5,800,000 and will incur a cost of sale of 3 percent of the sale price. The property allocation was 75 percent for improvements and 25 percent for land at the time of purchase. The owners 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?

1 $5,626,000

2 $4,329,575

3. $5,333,193

4. $5,800,000