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.

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Definitions:

Management By Objectives

A management strategy where goals are defined clearly for each employee, and performance is evaluated based on the achievement of these goals.

Collective Bargaining

The process in which employers and representatives of a labor union negotiate terms of employment, such as wages, hours, and working conditions.

Integrative Agreement

A resolution in negotiation or conflict resolution where all parties involved achieve mutual gains and satisfaction, often through collaborative problem-solving.

Ombudsperson

An independent, impartial individual appointed to receive and investigate complaints from individuals or groups, offering a resolution or mediation.