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Wilkes Development Co. is selling Twelve Oaks Apartments for $1,159,000. The sales proceeds before tax are $440,097, cost of sale 5 percent, unamortized loan points
Wilkes Development Co. is selling Twelve Oaks Apartments for $1,159,000. The sales proceeds before tax are $440,097, cost of sale 5 percent, unamortized loan points of $11,250, cost recovery recapture of $105,892 and capital gain from appreciation of $51,050. Tax rates are as follows: Ordinary Income 37 percent; Cost Recovery 25 percent; Capital Gain 20 percet. What will be the Sales Proceeds After Tax? $407,577 $402,028 $383,961 $271,905
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