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No prepayment penalty for the loan

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You acquired a building for $1 million and financed the acquisition with a $75 thousand interest only loan. Three years later, you sold the property for $1.2 million. Assume 70% of the property was attributed to structure and that the structure was depreciated over a 39-year period. Also assume that capital gains are taxed at 15% and that accumulated depreciation is taxed at 25%. Also assume a 3% sales cost for the building and no prepayment penalty for the loan. What would be your net profits? Present your work in Excel.

Reference no: EM133002390

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