You and your business partners own a bunch of real estate, and you are currently working on making a sale-leaseback decision for your office building. You and your business partners bought this office building 8 years ago at which time you paid $1,000,000. The "building component" of this office property is 77%. It depreciates over 26 years. You believe that in today's market it could be sold for $4,000,000. You also believe that if you don't sell and lease it back and instead keep it for 7 more years, you can probably sell it then then for $12,000,000. A 38% tax rate applies on all taxable income for your and your partners' real estate business. If you and your partners decide against the sale-leaseback and to keep the property, what would be the total taxes due upon sale at the time when you will be selling the office building in 7 years? Do NOT put "$" in your answer. Round to 2 decimal places. Do NOT round your intermediate calculations, or if you can solve this problem in Excel with correct cell referencing! This way you'll avoid rounding errors. You and your business partners own a bunch of real estate, and you are currently working on making a sale-leaseback decision for your office building. You and your business partners bought this office building 8 years ago at which time you paid $1,000,000. The "building component" of this office property is 77%. It depreciates over 26 years. You believe that in today's market it could be sold for $4,000,000. You also believe that if you don't sell and lease it back and instead keep it for 7 more years, you can probably sell it then then for $12,000,000. A 38% tax rate applies on all taxable income for your and your partners' real estate business. If you and your partners decide against the sale-leaseback and to keep the property, what would be the total taxes due upon sale at the time when you will be selling the office building in 7 years? Do NOT put "$" in your answer. Round to 2 decimal places. Do NOT round your intermediate calculations, or if you can solve this problem in Excel with correct cell referencing! This way you'll avoid rounding errors