Suppose You Sell a Fixed Asset for $112,000 When Its

question 1

Multiple Choice

Suppose you sell a fixed asset for $112,000 when its book value is $112,000. If your company's marginal tax rate is 39%, what will be the effect on cash flows of this sale (i.e., what will be the after-tax cash flow of this sale) ?

• A) $0
• B) $68,320
• C) $112,000
• D) $34,720

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Definitions:

External Iliac Vein

A large vein in the pelvic region that carries deoxygenated blood from the lower limbs back to the heart.

Cephalic Vein

A large vein on the outermost side of the upper arm, commonly used for intravenous injections or blood draw.

Hepatic Vein

A vein that drains blood from the liver into the inferior vena cava, helping in the regulation of blood pressure in the liver.

Radial Vein

The radial vein is a blood vessel in the forearm that drains blood from the lateral aspects of the hand and arm, ultimately returning it to the heart.