An Asset with a Book Value of $40,000 Is Sold

question 119

Multiple Choice

An asset with a book value of $40,000 is sold at a loss before taxes are considered) of $20,000.The applicable tax rate is 20%.The net after-tax cash effect of this transaction is a _____.

• A)$20,000 cash inflow
• B)$12,000 cash outflow
• C)$48,000 cash inflow
• D)$24,000 cash inflow

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Definitions:

Crime

Acts in violation of the legal codes which govern society, ranging from minor offenses to serious felonies, impacting individuals and communities.

Violence

The use of physical force so as to injure, abuse, damage, or destroy.

Mugwumps

A political movement in the United States during the late 19th century, characterized by reform-minded members who left the Republican Party for the Democratic Party.

Political Party

An organized group of people with shared political beliefs and goals, aiming to influence or control government policy and actions through the election of its members to public office.