Ronnie's Custom Cars Purchased Some Fixed Assets Two Years Ago

question 86

Multiple Choice

Ronnie's Custom Cars purchased some fixed assets two years ago for $39,000. The assets are classified as 5-year property for MACRS. Ronnie is considering selling these assets now so he can buy some newer fixed assets which utilize the latest in technology. Ronnie has been offered $19,000 for his old assets. What is the net cash flow from the salvage value if the tax rate is 34%?

• A) $16,358.88
• B) $17,909.09
• C) $18,720.00
• D) $18,904.80
• E) $19,000.00

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Definitions:

"MAMA" Cycles

A term used to describe the identity formation process of "Moratorium, Achievement, Moratorium, Achievement," where an individual explores various identities before making commitments.

Moratorium-achievement

Moratorium-achievement refers to a stage in identity development where individuals actively explore various options and commitments in their quest to form their own identity.

Positive Identities

The aspects of an individual’s self-concept that are viewed in a positive light and contribute to the sense of self-worth.

Second-generation Immigrants

Individuals born in a country, but having at least one parent who immigrated to that country.