Which of the Following Can a Final Disposal of a Capital

question 51

Multiple Choice

Which of the following can a final disposal of a capital asset not produce?

• A)A net cash outflow.
• B)A net cash inflow.
• C)An income tax consequence.
• D)An operating gain or loss.

---

Definitions:

Provincial Marginal Tax Rate

The Provincial Marginal Tax Rate is the tax rate that applies to the last dollar earned and varies by province within a country.

Marginal Tax Rates

The tax rate applied to the last unit of currency earned, important for understanding the tax implications of earning additional income.

Capital Gains

The profit realized from the sale of a capital asset, like stocks or real estate, when the sale price exceeds the purchase price.