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:

Candidate's Personality

The combination of characteristics or qualities that form an individual's distinctive character, evaluated during job recruitment processes.

Application Letter

A document submitted to an employer by a job applicant with the aim of expressing interest in a position and highlighting qualifications and experience.

Elicit A Response

To provoke or draw out a reaction, answer, or feedback from someone or something.

Final Paragraph

The last section of a written document or message which summarizes the main points or provides a concluding remark.