Question
Problem 3. ATCF from Building Sale You are selling your building for $18,000,000, with 4.5% in selling costs. You have take $3,000,000 in depreciation and
Problem 3. ATCF from Building Sale
You are selling your building for $18,000,000, with 4.5% in selling costs. You have take $3,000,000 in depreciation and put 600,000 into capital improvements over the period you owned the building, which you purchased for $15,000,000 and incurred 25,000 in acquisition costs. Your original loan was for 10,500,000 which you took out 5 years ago, with a 5.25% interest rate with a 25 year amortization period. Depreciation recapture tax rate is 28.8% and capital gains tax rate is 23.8%.
What is your selling expense?
What is your net selling price?
What is your loan payoff?
What is your BTCF from sale?
What is your adjusted basis?
What is your gain on sale?
What is your depreciation recapture tax?
What is your capital gain tax?
What is your total tax on sale?
What is your ATCF from sale?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started
Fundamentals Of Financial Institutions Management
Authors: Marcia Cornett, Anthony Saunders
1st Edition
0256253676, 9780256253672
