An Asset with a Book Value of $160,000 Is Sold

question 38

Multiple Choice

An asset with a book value of $160,000 is sold at a loss (before taxes are considered) of $40,000. If the applicable tax rate is 20%, the net after- tax cash effect of this transaction is a(n) :

• A) $8,000 cash inflow
• B) $128,000 cash inflow
• C) $48,000 cash inflow
• D) $8,000 cash outflow

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Definitions:

Unconscious Mind

The unconscious mind consists of the processes in the mind that occur automatically and are not available to introspection, including memories, instincts, and desires that lie outside of conscious awareness.

Unconscious Motivation

A driving force behind behaviors that the individual is not aware of, deeply embedded in the unconscious mind.

Psychosexual Stages

Freud's theory of five developmental stages from infancy to adulthood, where pleasure shifts from one body part to another.