An Asset with a Book Value of $320,000 Is Sold

question 32

Multiple Choice

An asset with a book value of $320,000 is sold at a $240,000 pre-tax gain in a year when the tax rate is 20%._____ is the net after-tax cash inflow resulting from this transaction.

• A)$144,000
• B)$656,000
• C)$512,000
• D)$560,000

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Definitions:

Penalty Clause

A contractual provision that imposes a penalty on a party for not meeting certain conditions or deadlines.

Performed According

Actions or tasks executed in compliance with specified standards, requirements, or agreements.

Procurement Team

A group of individuals with the responsibility of acquiring goods and services needed for a project or organization.

Work Teams

Groups of individuals collaborating on tasks and projects with a common goal within an organization.