3. In order to accommodate the inventory required from #2 above, they believe they would need to relocate to a new space. The fair market value of Tucson LLC's building is $425,000, the cost, A/D and mortgage on the building are on the balance sheet above. They recently met with two potential buyers for the building: Fred Rouleau, who owns a building which would suit their needs. Fred would like to enter into a like kind exchange with Tucson LLC. Fred has agreed to assume Tucson's mortgage on the building as part of the like kind exchange. The relevant information on Fred's building is as follows: FMV $400,000 Cost $200,000 A/D-Tax ($125,000) Chris Burke also has a building that would suit Tucson LLC's needs with a FMV of $430,000. Separately, Tucson LLC's real estate agent has a buyer interested in purchasing Tucson LLC's building for its FMV of $425,000. Determine whether it is better from a tax perspective for Tucson LLC to enter into a like kind exchange with Fred or if they should buy the building from Chris and sell their building to the buyer their real estate agent identified. When making your determination consider both the gain on sale of the Tucson LLC's building (if any) as well as the tax depreciation expense allowable on the new building acquired by Tucson LLC. You must show your calculations for each scenario as support for your conclusion