Al Simpson helped started Excel System in 2010. At the time, he purchased 117,000 shares of shares of stock at $1. per share. In he has the opportunity to sell his interest in the company to Folsom Corp. for $40 a share In cash. His capital gains tax rate would be 10 percent.

b. Assume, instead of cash. he accept Folsom Corp stock value at $40 per share. he pays no tax at that time. He holds the stock for years and then sells it for $82.50 (the stock pays no cash dividends). What will be the value for before tax profit. capital tax gain. and aftertax profit be in 2020). round number to nearest dollar. (