Facts and information below are needed to resolve questions 39 through 40:

Jim Realty LLC, a partnership owned entirely by individuals, sells an apartment building for $35,600,000. The basis of the building immediately prior to the sale is as follows:

	Original Cost - Unadjusted Tax Basis	Accumulated Depreciation
Land	9,000,000	-
Building	25,750,000	(800,000)
Furniture & Fixtures	125,000	(95,000)

39. Using the above information, determine the gain or loss on the sale of the apartment building to the individual owners. 40. Assuming that the allocation of the selling price is $9,100,000 to land, $26,400,000 to building and $100,000 to furniture and fixtures, prepare an estimate of the total taxes for the owners on the sale.