Winslow,Inc

question 95

Multiple Choice

Winslow,Inc. is considering the purchase of a $225,000 piece of equipment. The equipment is classified as 5-year MACRS property. The company expects to sell the equipment after four years at a price of $50,000. What is the after-tax cash flow from this sale if the tax rate is 35%?

• A) $37,036
• B) $38,880
• C) $46,108
• D) $47,770
• E) $53,892

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Definitions:

Financial Disclosure

The process of releasing all relevant financial information about a company to the public, ensuring transparency and aiding in informed decision making.

Internal Controls

Processes designed to ensure the reliability of financial reporting, effective and efficient operations, and compliance with laws and regulations.

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Financial institutions specializing in accepting savings deposits and making mortgage and other loans.

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