Jim Realty LLC, a partnership owned entirely by individuals, sells an apartment building for $39,600,000. 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	(2,900,000)
Furniture & Fixtures	125,000	(100,000)

Q1:Using the above information, determine the gain or loss on the sale of the apartment building to the individual owners.

Q2: Assuming that the allocation of the selling price is $9,600,000 to land, $30,000,000 to building and $100,000 to furniture and fixtures, prepare an estimate of the total taxes for the owners on the sale.

Q3: Prepare an alternative calculation for the sale with the total sales price of $72,200,000 that would result in lower taxes for the individuals.