Assume an Asset Costs $38,700 and Has a Current Book

question 81

Multiple Choice

Assume an asset costs $38,700 and has a current book value of $18,209.The asset is sold today for $15,000 cash.The tax rate is 34 percent.As a result of this sale,the company's net cash flow will

• A)increase by exactly $15,000.
• B)decrease by the difference between the $18,209 and the $15,000.
• C)increase by more than $15.000.
• D)increase by less than $15,000.
• E)decrease by some amount.

---

Definitions:

Joint Probability Distribution

A statistical measure that gives the probability of two or more events occurring simultaneously and their interdependence.

Probability Distribution

A probability distribution is a mathematical function that provides the probabilities of occurrence of different possible outcomes in an experiment.

Golfing Store

A retail establishment that specializes in selling golf equipment, apparel, and accessories.

Joint Probability Distribution

This refers to a statistical measure that gives the likelihood of two events occurring together and at the same time within a given period.