Suppose You Sell a Fixed Asset for $90,000 When Its

question 54

Multiple Choice

Suppose you sell a fixed asset for $90,000 when its book value is $95,000. If your company's marginal tax rate is 21 percent, what will be the effect on cash flows of this sale (i.e., what will be the after-tax cash flow of this sale) ?

• A) $3,000
• B) $5,000
• C) $91,050
• D) $90,000

---

Definitions:

Extraverts

Individuals characterized by their outgoing, socially confident, and energetic nature, often seeking stimulation from the external environment.

Genetic Factors

Components of an individual's genetic makeup that influence traits, behaviors, and susceptibility to certain conditions or diseases.

Identical Twins

Twins that originate from the same fertilized egg and share exactly the same genetic material.

Heritability

describes the proportion of variation in a particular trait within a population that can be attributed to genetic differences among individuals.