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Business, 16.12.2019 12:31 estherboocx

Mrs. o is negotiating to purchase a tract of land from dc company, a
calendar year taxpayer. dc bought this land six years ago for
$480,000. according to a recent appraisal, the land is worth $800,000
in the current real estate market. according to dc’s director of tax,
the company’s profit on the sale will be taxed at 35 percent if the sale
occurs this year. however, this tax rate will definitely
decrease to 21 percent if the sale occurs next year. mrs.
o is aware that dc would prefer the sale close next year. however,
mrs. o needs the land immediately to begin construction of a new
retail outlet. she offers to pay $875,000 for the land with the
stipulation that the sale close by december 31. should dc accept
mrs. o’s offer?

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Mrs. o is negotiating to purchase a tract of land from dc company, a
calendar year taxpayer. d...
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