XYT Company Engaged in a Transaction That Generated $50,000 Cash

question 71

Multiple Choice

XYT Company engaged in a transaction that generated $50,000 cash deposited in the company bank account and required the company to pay $12,000 out of that account.XYT's marginal tax rate is 30%.Which of the following statements is false?

• A)If the deposit is taxable income and the payment is deductible,the transaction generated $26,600 after-tax cash flow.
• B)If the deposit is taxable income but the payment is nondeductible,the transaction generated $35,000 after-tax cash flow.
• C)If the deposit is not taxable income and the payment is nondeductible,the transaction generated $38,000 after-tax cash flow.
• D)None of the above is false.

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Definitions:

Whistle-blowing

The act of exposing any kind of information or activity within a private, public, or government organization that is deemed illegal, unethical, or not correct.

Reporting

The process of formally communicating information, outcomes, or progress through various means such as written documents, presentations, or verbal updates.

Ethical

Pertaining to or dealing with morals, principles of morality concerning right and wrong behavior.

Competition

Competition involves the rivalry between entities, such as businesses or individuals, striving for a common goal, such as market dominance or recognition, driving innovation and improvements.