Facts and information below are needed to resolve questions 35 through 37:

Land Building Furniture & Fixtures

Original Cost - Unadjusted Tax Basis 15,000,000 60,000,000 300,000

Accumulated Depreciation - (21,000,000) (200,000)

Jim Realty LLC, a partnership owned entirely by individuals, sells an apartment building for $76,500,000. The basis of the building immediately prior to the sale is as follows:

34. Using the above information, determine the gain or loss on the sale of the apartment building to the individual owners.

34. Assuming that the allocation of the selling price is $19,000,000 to land, $57,000,000 to building and $500,000 to furniture and fixtures, prepare an estimate of the total taxes for the owners on the sale.

36. Prepare an alternative calculation for the sale with the total sales price of $76,500,000 that would result in lower taxes for the individuals.