Hi, I need help with the last question. The answer is NOT $355,828 or $355,827, have tried both. Thanks!

Skylar is ready to retire and wants your professional opinion on the most advantageous way to dispose of a 40% limited ownership interest in the three-member STU LLC. Option 1. Skylar will immediately sell the LLC interest to Partner Tameeka for $300,000 cash. Skylar will then invest the aftertax proceeds in a tax-exempt (Federal and state) municipal bond paying 4% interest per year, compounded at the end of each year. (Assume that there are no Federal or state income taxes on the interest earned on the bond.) Option 2. STU will distribute a parcel of land (investment property) to Skylar in complete redemption of the 40% interest. STU's land was recently appraised for $260,000. The appraiser estimated that Skylar could sell the land for $400,000 (before taxes) at the end of eight years. For simplicity, determine the tax results of the land distribution under the proportionate liquidating distribution rules. [The proportionate liquidating distribution rules yield the correct result because Skylar is a limited partner and the entire distribution is treated as a 736 (b) payment.] Other information. In either scenario, at the end of the eighth year, Skylar will convert the asset (bond or land) to cash to help cover living expenses. The future value factor at 4% at the end of eight years is 1.3686. Assumptions: - STU owns no hot assets and has no stated or unstated goodwill. - Skylar's basis in the LLC interest is $100,000. - The LLC's basis in the land is $80,000. - Skylar's tax rate is 20% on capital gains. Complete the memo to Skylar describing how each option would be treated for tax purposes, and the after-tax amount of cash Skylar would have on hand after cashing the bond or selling the land at the end of year 8. To: Skylar From: Kelly Huang Date: February 11, 2022 Re: Alternatives for disposition of 40% interest in STU LLC You recently mentioned that you have two alternatives for disposing of your 40% limited ownership interest STU LLC. Option 1. In the first option, you would immediately sell the LLC interest to your partner, Tameeka, for $300,000 cash. You'll pay tax on any gain and invest any after-tax proceeds in a municipal bond for eight years. In this alternative, you would realize current after-tax sales proceeds of $ At the end of eight years, with annual compounding, you would have cash on hand of $ X