XYT Company Engaged in a Transaction That Generated $50,000 Cash

question 71

Multiple Choice

XYT Company engaged in a transaction that generated $50,000 cash deposited in the company bank account and required the company to pay $12,000 out of that account.XYT's marginal tax rate is 30%.Which of the following statements is false?

• A)If the deposit is taxable income and the payment is deductible,the transaction generated $26,600 after-tax cash flow.
• B)If the deposit is taxable income but the payment is nondeductible,the transaction generated $35,000 after-tax cash flow.
• C)If the deposit is not taxable income and the payment is nondeductible,the transaction generated $38,000 after-tax cash flow.
• D)None of the above is false.

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Definitions:

Cornea

The cornea is the transparent front part of the eye that covers the iris, pupil, and anterior chamber, contributing to the eye's ability to focus light.

Posterior Chamber

The fluid-filled space in the eye between the iris and the lens, forming part of the eye’s anterior segment and involved in maintaining intraocular pressure.

Vitreous Chamber

The large space inside the eye, filled with vitreous humor, that helps maintain its shape and supports the retina.

Iris

The colored part of the eye surrounding the pupil, responsible for controlling the diameter of the pupil and thus the amount of light reaching the retina.