Bob, age 60 and single, has recently retired from IBM. He has $690,000 available in his 401(k)

fund and he is thinking of using that money to open a used car business that will be located at 210 Ocean View Drive in Pensacola , Florida. Bob has estimated that the business might make $300,000 in taxable income. Bob's personal wealth including investments in land, stocks, and bonds is about $14,000,000. He reported an interest income of $20,000 and dividend income of

$6,000 last year. The $14,000,000 includes land worth $9,000,000 that Bob bought in 1966 for $450,000. He's also considering transferring a possible 40% interest in his new business

to his daughter Mandy, age 23 and single

How will an schedule K-1 (1065 form) be completed If Bob chose to sell his landat 20% tax bracket?