The balance of the purchase price, and initial cash to operate the business come from the sale of six partnership units at $100,000. The tax rate on income is 35%, on Recapture is 25% and on Capital Gains is 20%. Assume all cash is distributed to investors in the year in which it is earned. 8) What is the net income in year one? a. 10,000 b. 30,000 C. 40,000 d. 50,000 9) How much recapture tax is due on sale if any? a. 100,000 b. 125,000 C. 25,000 d. 0 10) How much capital gain tax is due on sale if any? a. 8,800,000 b. 92,820 C 292,820 d. 0