Ms. D sold a business that she had operated as a sole proprietorship for 18 years. On date of sale, the business balance sheet showed the following assets:

	Tax Basis
Accounts receivable	$	50,750
Inventory		153,600
Furniture and equipment:
Cost		60,000
Accumulated depreciation		(48,000	)
Leasehold improvements:
Cost		24,500
Accumulated amortization		(4,900	)

The purchaser paid a lump-sum price of $303,750 cash for the business. The sales contract stipulates that the FMV of the business inventory is $170,000, and the FMV of the remaining balance sheet assets equals adjusted tax basis. Assuming that Ms. Ds marginal tax rate on ordinary income is 35 percent and her rate on capital gain is 15 percent, compute the net cash flow from the sale of her business.

Ms. D sold a business that she had operated as a sole proprietorship for 18 years. On date of sale, the business balance sheet showed the following assets Tax Basis Accounts receivable $50,750 153,600 Inventory Furniture and equipment: 60,000 (48,000) Cost Accumulated depreciation Leasehold improvements: 24,500 Cost Accumulated amortization (4,900) The purchaser paid a lump-sum price of $303,750 cash for the business. The sales contract stipulates that the FMV of the business inventory is $170,000, and the FMV of the remaining balance sheet assets equals adjusted tax basis. Assuming that Ms D's marginal tax rate on ordinary income is 35 percent and her rate on capital gain is 15 percent, compute the net cash flow from the sale of her business Net cash flow