Use the Following Information to Answer the Following Questions

question 91

Multiple Choice

Use the following information to answer the following Questions
Carmen Company has an asset that cost $5,000 and currently has accumulated depreciation of $2,000. Suppose the firm sold the asset for $2,500 and is subject to a 30% income tax rate.
-The net after-tax cash flow of the disposal is:

• A) $2,100.
• B) $2,350.
• C) $2,500.
• D) $2,650.
• E) None of the answers is correct.

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Definitions:

Age

The length of time that a person or entity has been alive or in existence.

Negligence

The failure to take appropriate care in doing something, leading to damage or injury to another.

Worn Down Brakes

A condition of vehicle brakes where the brake pads or shoes have been used to the point of reduced effectiveness, posing safety risks.

Sue

The act of bringing a legal action against an individual, entity, or organization, seeking redress or enforcement of rights through a judicial process.