A Textile Company Invests $12 Million in an Open-End Spinning

question 41

Multiple Choice

A textile company invests $12 million in an open-end spinning machine.This was depreciated using the seven-year MACRS schedule shown above.If the company sold it immediately after the end of year 3 for $7 million,what would be the after-tax cash flow from the sale of this asset,given a tax rate of 40%?

• A)$1,300,480
• B)$1,950,720
• C)$2,076,880
• D)$5,699,520

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Definitions:

Moral Transgressions

Actions or behaviors that violate ethical, moral, or social norms, often resulting in disapproval or punishment.

Moral Development

The process by which individuals develop understandings of what is right and wrong, influencing their behavior and social interactions.

Subjective Sense

An individual's personal perspective or interpretation of experiences, feelings, or beliefs.

Me-Self

William James's term for the conscious sense of personal identity that comprises the self as known or the collection of subjective experiences.