Compute the after$-$tax cash flow from the sale of the following nonresidential property:

The purchase price was $$450,000.$

The investor obtained a $$360,000$ loan.

There were no upfront financing costs.

The market value of the property increased to $$510,000$ over the two$-$year holding period.

Selling costs are $3$ percent of the sales price.

The investor is in the $35$ percent ordinary tax bracket and $25$ percent depreciation recapture bracket.

Capital gains will be taxed at $15$ percent.

The balance of the loan at the time of sale is $$354,276.$

$15$ percent of the initial purchase price represented the value of the land. The remaining $85$ percent represents real property and has been depreciated using straight$-$line depreciation and a $39-$year cost recovery period.

$$30,000$ in capital expenditures has been incurred since acquisition; for simplicity, however, the capital expenditures have been added to the tax basis but not separately depreciated.

Required:

a$.$ Compute the annual depreciation deduction.

Note: Do not round intermediate calculations. Round your answer to $2$ decimal places.

b$.$ Compute the adjusted basis at the time of sale $($after two years$).$

Note: Do not round intermediate calculations and round your final answer to nearest whole dollar amount.

c$.$ Compute the tax liability from sale.

Note: Do not round intermediate calculations and round your final answer to nearest whole dollar amount.

d$.$ Compute the after$-$tax cash flow $($equity reversion$)$ from sale