Walt Hubble is contemplating selling rental property that originally cost \($200,000.\) He believes that it has appreciated in value at an annual rate of 6% over its 4-year holding period. He will have to pay a commission equal to 5% of the sale price to sell the property.

Currently, the property has a book value of \($137,000.\) The mortgage balance outstanding at the time of sale currently is \($155,000.\) Walt will have to pay a 15% tax on any capital gains and a 25% tax on recaptured depreciation.

a. Calculate the tax payable on the proposed sale.

b. Calculate the after-tax net proceeds associated with the proposed sale, CFR.