Cash-Flow Analysis: If an Existing Asset Is Sold at a Gain

question 72

Multiple Choice

Cash-flow analysis: If an existing asset is sold at a gain, and the gain is taxable, then the after-tax proceeds from this transaction would be equal to:

• A) Net proceeds from the sale plus the after-tax gain on the sale.
• B) Net proceeds from the sale less the after-tax gain on the sale.
• C) Net proceeds from the sale plus the taxes paid on the gain.
• D) Net proceeds from the sale less the taxes paid on the gain.
• E) The pre-tax proceeds plus taxes on the gain.

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Definitions:

Biosynthesis

The process by which living organisms produce complex compounds from simpler ones, often involving enzyme catalysis.

Strecker Synthesis

A chemical synthesis method for producing amino acids by reacting an aldehyde with ammonium chloride and potassium cyanide.

Tryptophan

An essential amino acid used by the body to produce serotonin and melatonin, found in various protein-rich foods.

α-Ketoacid

An organic compound containing both a ketone and a carboxylic acid group, with the ketone group located at the second position from the acid.