Reid Inc Received a $90,000 Cash Payment, Only $50,000 of Which

question 3

Multiple Choice

Reid Inc. received a $90,000 cash payment, only $50,000 of which was taxable income. If Reid's marginal tax rate is 40%, compute Reid's after-tax cash flow. 

• A) $54,000
• B) $50,000
• C) $30,000
• D) None of the above

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