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Question
A property is sold for $5,100,000 with selling costs of 3% of the sales price. The mortgage balance at the time of sale is $3,600,000. The property was purchased 5 years ago for $4,820,000. Annual depreciation allowances of $153,016 have been taken. If the tax rate is 28%, what is the after-tax cash flow from sale of the property?
A) $1,184,062
B) $969,840
C) $1,347,000
D) $1,097,218
Answer
This answer is hidden. It contains 19 characters.
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