A Property Is Sold for $5,100,000 with Selling Costs of 3

question 36

Multiple Choice

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

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Definitions:

Inner-directed

A characteristic of individuals who are motivated by their own values and standards rather than external expectations.

Outer-directed

A personality trait characterized by being more influenced by external factors and the environment than by personal thoughts or feelings.

Part of Nature

An element or aspect that inherently belongs to the natural world, emphasizing the interconnectedness of all living and non-living things.