In November 2015 you purchased a factory property for $64 million of which $30 million was funded with a 15-year term loan and $34 Million was funded with equity. Of the total $64 Million purchase price, $4 Million was for land, $15 million was for depreciable equipment (MACRS 7 year property) and the balance was for the building. The property was idle through the 2015 year-end holidays, pending approvals for occupancy, and was finally placed in service in February 2016. You plan to sell the entire property (land, building and equipment) at the end of August, 2021, for gross (pre-tax) proceeds totaling $65 Million, at which time you will pay off the $30 million debt (ignore interest, which was paid prior closing of the sale). Using a tax rate of 21%, compute (A) the after-tax cash proceeds from the 2021 sale of the property but before debt payoff and (B), after-tax proceeds further reduced by the debt payoff and (c) the excess or deficit of net cash to equity holders as compared to their initial investment. Assume that you can currently use tax benefits from losses, if any: (round to whole dollars) ====================================== Proceeds 65,000,000 Less tax (cost), or plus tax benefit, on sale (4,130,695) = After-tax proceeds before Debt payoff: 60,869,305 Less Debt principal payoff (30,000,000.00) Proceeds after tax, and after loan payoff 30,869,305 Equity contribution: (34,000,000) Excess (deficit) to equity holders over investment( 3,130,695)

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