Marlo's Marlo's is located one block off the local college campus and has been in business for 32 years. Marlo had a taxable basis in the bar of $10,000 at his death. The fair market value at the time of Marlo's death was $40,000. Two years ago, Karl executed a legal docu- ment making Marlo's community property with June. Karl completely refurbished the bar at a cost of $30,000. The building and prop- erty are currently valued at $78,000. Property taxes are high in this district; they are currently $2,278 (2.92 per hundred). The bar could be sold at a fair market value of $138,000 and is increasing at 3.5% per year. The bar's net income for the last three years was $64,000 $59,600, and $57,500. They also expect Karl's net income from Marlo's to increase at 3.5% annually, both currently and over the long term. Karl plan to retire in 25 years when they are 62 years old. What is the projected value of Marlo's at Karl's expected retirement date